Public Credit Rating Agencies

Increasing Capital Investment and Lending Stability in Volatile Markets

  • Authors
  • Susan¬†K.¬†Schroeder

Table of contents

  1. Front Matter
    Pages i-xiii
  2. Susan K. Schroeder
    Pages 1-7
  3. Susan K. Schroeder
    Pages 25-72
  4. Susan K. Schroeder
    Pages 73-104
  5. Susan K. Schroeder
    Pages 105-124
  6. Susan K. Schroeder
    Pages 125-159
  7. Susan K. Schroeder
    Pages 161-171
  8. Back Matter
    Pages 173-196

About this book

Introduction

In the aftermath of the Global Financial Crisis, there have been many criticisms weighed against private credit rating agencies. Many claim they only exacerbate financial market volatility by issuing faulty public statements, ratings warnings, and downgrades. This instability increases the uncertainty in business environments and weakens the pace of business investment. Their rating changes also prompt national governments to reduce their spending at a time when fiscal expenditures are crucial for economic recovery.

Public Credit Rating Agencies argues for the creation of national public credit rating agencies, offering the first in-depth discussion of their implied role and function operating alongside private agencies. Schroeder provides an up-to-date overview of the ratings industry and the government bodies that monitor its activities. She suggests that the proper implementation of public credit rating agencies will promote the stability of lending, further development and adaptation of new technology, and increase labor productivity and the profitability of new investment in businesses. Finally, this book clarifies the inconsistencies that have surfaced between public budgeting and a rating agency's evaluation of national budgets. 

Keywords

credit ratings rating agencies public credit Minsky regulating capital incremental rate default risk creditworthiness sovereign business business finance Credit Risk finance investment Rating

Bibliographic information

  • DOI https://doi.org/10.1057/9781137359117
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2015
  • Publisher Name Palgrave Macmillan, New York
  • eBook Packages Palgrave Economics & Finance Collection
  • Print ISBN 978-1-349-57011-9
  • Online ISBN 978-1-137-35911-7
  • About this book