The Roles of the Credit Rating Agencies Before and After European Sovereign-Debt Crisis

• Main Authors: Yi-Ming Chen, 陳禕旻
• Other Authors: Bang-HanChiu
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/56263696200767293358

碩士 === 元智大學 === 管理碩士在職專班 === 100 === The financial tsunami had effected the global financial markets and caused the European sovereign-debt crisis. Standard &; Poor's, Moody's and Fitch, the three major credit rating agencies in the USA which occupy nearly 85-95% of the market share and are considered as "oligopoly", did the false evaluation which resulted in the bonds default and triggered a domino effect. It is the basic function of credit rating agencies to provide impartial and objective reports for investors to make investment decisions. However, the performance of these credit rating agencies has become seriously questionable. Based on collecting news related to the credit rating agencies and evaluation and adjustment of the sovereignl credit ratings from the beginning of the financial tsunami through European sovereign-debt crisis, this study finds that credit ratings made by the oligopolists has been challenged by investors after the financial tsunami. Moreover, credit rating agencies are also subjected to the criticism during European sovereign-debt crisis. Even the credit rating agencies have been recognized internationally but the investors have gradually lost their faith on these “unfair evaluations”. Therefore, it is important for investors to not only to review the report from credit rating agencies but also to access sufficient information about the investment.