Credit Rating Agencies: An Overview

Credit rating agencies (CRAs) play a central role in the debt (bond) markets of many countries. CRAs have also attracted a considerable amount of public and policy attention during the past decade, especially with respect to their role in the financial crisis of 2008-2009 and their role in the more recent Eurozone difficulties. This article provides an overview of the CRAs: who they are, what they do, how their centrality to the financial markets came about, what their role in the financial crisis was, and the important aspects of the policy measures that have affected the CRAs.