IDEAS home Printed from https://ideas.repec.org/a/cdh/backgr/130.html
   My bibliography  Save this article

Addicted to Ratings: The Case for Reducing Governments’ Reliance on Credit Ratings

Author

Listed:
  • Philippe Bergevin

    (C.D. Howe Institute)

Abstract

Credit rating agencies have been blamed for their role in the recent financial crisis, notably for having assigned high ratings to complex financial instruments that yielded billions in losses to investors. As a consequence, a number of reforms have been proposed or introduced – including for example increased disclosure of rating methodologies. This Backgrounder argues that reducing the government use of credit ratings may be the single most important step towards restoring the credibility and integrity of rating agencies.

Suggested Citation

  • Philippe Bergevin, 2010. "Addicted to Ratings: The Case for Reducing Governments’ Reliance on Credit Ratings," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 130, May.
  • Handle: RePEc:cdh:backgr:130
    as

    Download full text from publisher

    File URL: https://www.cdhowe.org/public-policy-research/addicted-ratings-case-reducing-governments-reliance-credit-ratings
    Download Restriction: no

    References listed on IDEAS

    as
    1. William B.P. Robson & Colin Busby, 2010. "Freeing up Food: The Ongoing Cost, and Potential Reform, of Supply Management," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 128, April.
    2. David Johnson, 2007. "School Grades: Identifying Alberta’s Best Public Schools," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 104, September.
    3. Philippe Bergevin, 2010. "Change is in the Cards: Competition in the Canadian Debit Card Market," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 125, February.
    4. Lawson A.W. Hunter, Q.C. & Edward Iacobucci & Michael J. Trebilcock, 2010. "Scrambled Signals: Canadian Content Policies in a World of Technological Abundance," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 301, January.
    5. Michael Parkin, 2010. "How Soon? How Fast? Interest Rates and Other Monetary Policy Decisions in 2010," e-briefs 92, C.D. Howe Institute.
    6. Colin Busby, 2010. "Supporting Employees who Deploy: The Case for Financial Assistance to Employers of Military Reservists," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 123, January.
    7. Pierre Siklos, 2010. "Taking Monetary Aggregates Seriously," e-briefs 94, C.D. Howe Institute.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Financial Services; credit-rating agencies (CRAs); third party credit risk assessment; nationally recognized statistical rating organizations (NRSROs);

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdh:backgr:130. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristine Gray). General contact details of provider: http://edirc.repec.org/data/cdhowca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.