However, the coverage of credit ratings in Europe is being considered to a certain extent to be under developed in comparison to that of the United States as a result of the greater enhanced dependence upon bank intermediation. The rating penetration was even found to be quite different even within the quarters of the European Union as a result of the increased prevalence of the different types of financial structures with more or less financial disintermediation. The continuing internationalization / Europeanization of the level of fixed income portfolios however, are being expected to remain as a strong element of demand for the purpose of ratings in the European bond market. Besides, the ratings are also being required by the different regulators in the various areas. Presently, however, the new market-based methods for the purpose of evaluating credit risks have been derived from that of the equity prices, subordinated bond prices or that of the CDSs are coming out as alternative means for ratings. (The Euro Bond Market Study) The technical committee of the International Organization of Securities Commissions evaluated the role of rating agencies and finds it worthwhile to publish a set of Code of Conduct for Credit Rating Agencies. The IOSCO Task Force emphasized that credit rating prevail to benefit the investors. Ratings are not there to help the issuers to enter the capital markets, irrespective of the fact that investors have faith in the integrity and reliability of credit ratings. It has been a matter of concern as to the way the rating agencies can best safeguard the quality and integrity of the rating process; the way rating agencies best protect against the contradictions of interest that might affect their analytical independence; the type of information...
(Speech by SEC Staff: Remarks for the International Organization of Securities Commissions Annual Conference Panel on the Regulation of Credit Rating Agencies)
Credit Ratings The company which is responsible for assigning the issuers of particular kind of debt obligations and debt instruments the credit ratings is known as a credit rating agency (CRA). There are a few cases in which the ratings are given to the underlying debt servicers. It is the special purpose entities, non-profit organizations, companies, national governments and the state and local governments who, in majority of the cases get
257% Greece 12.514% Ireland Baa1 9.384% Spain 5.119% Portugal A3 7.497% The structural issues that underlie the crisis remain unresolved. The austerity measures that have been implemented have failed miserably to restore business confidence -- they are crippling any economic recovery and have not given investors any reason to be confident about resolving the long-run debt problems faced by any of the peripheral Eurozone nations. The specter of increased Eurozone interest rates to meet the needs of Germany will only hurt
For example, Shu-Acquaye (2007) cites the basic differences in the legal systems in various parts of the world as contributing to the different approaches to corporate governance. Likewise, Shu-Acquaye cites these differences and adds, "The American corporate governance system adheres to the idea of shareholder primacy. Because the United Kingdom, Austria, and Canada share a legal system based on English common law and equity principles, they are similar to
International Diplomacy and Rise of Cyber Security Threats Cyber security is considered to be an ongoing issue for governments, the private sector and individuals all over the world. It is now unusual for more than a month to pass without news of a large and often significant cyber-attack (Kanuck). However, for some victims these attacks are an irritation while for others they are expensive and do result in negotiated secrets, taken
" (2008) It is also reported that the companies and banks are hurting in all economies that are "dollarized" economies" or those in which devaluation of the Dollar is occurring in recent years. While high Dollar inflows first drive growth and production, the capital inflows tend to hurt banking profitability when governments try to "mop up" excessive liquidity and sterilize Dollar inflows in exchange for low-yielding government bonds. China's banks, for
International Regulation, Accounting Standards and Australia Background and Need for Regulation International regulation is a necessity in the finance arena as the world bears a high rate of interconnection, particularly via banking and accounting. In 2008, Europe was given international accolades for its attempts to strengthen the world financial system and protect nations all over the world from a serious crisis. "Europe led the way last year in facing down the
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