The Rating Agencies and Their Credit Ratings: What They Are, How They Work, and Why They are RelevantISBN: 978-0-470-01800-2
Hardcover
524 pages
March 2009
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This book is a guide to ratings, the ratings industry and the
mechanics and economics of obtaining a rating. It sheds light on
the role that the agencies play in the international financial
markets. It avoids the sensationalist approach often associated
with studies of rating scandals and the financial crisis, and
instead provides an objective and critical analysis of the business
of ratings. The book will be of practical use to any individual who
has to deal with ratings and the ratings industry in their
day-to-day job.
Reviews
"Rating agencies fulfil an important role in the capital
markets, but given their power, they are frequently the object of
criticism. Some of it is justified but most of it portrays a
lack of understanding of their business. In their book The
Rating Agencies and their Credit Ratings, Herwig and Patricia
Langohr provide an excellent economic background to the role of
rating agencies and also a thorough understanding of their business
and the problems they face. I recommend this book to all
those who have an interest in this somewhat arcane but extremely
important area."
-Robin Monro-Davies, Former CEO, Fitch Ratings.
"At a time of unprecedented public and political scrutiny of the
effectiveness and indeed the basic business model of the Credit
Rating industry, and heightened concerns regarding the transparency
and accountability of the leading agencies, this book provides a
commendably comprehensive overview, and should provide invaluable
assistance in the ongoing debate."
-Rupert Atkinson, Managing Director, Head of Credit
Advisory Group, Morgan Stanley and member of the SIFMA Rating
Agency Task Force
"The Langohrs have provided useful information in a field where
one frequently finds only opinions or misconceptions. They supply a
firm base from which to understand changes now underway. A
well-read copy of this monograph should be close to the desk of
every investor, issuer and financial regulator, legislator or
commentator."
-John Grout, Policy and Technical Director, The Association
of Corporate Treasurers