Role of Credit Rating Agencies

Role of Credit Rating Agencies

Intuition Publishing
Updated Sep 23, 2020

When companies issue debt, to make it more marketable to investors that don't have the resources to undertake due diligence, the issue will pay for a third party to perform the due diligence on that loan. This third party is known as a credit rating agency. We look at the role of credit rating agencies, how they differ and the criticisms of credit rating agencies.