279 7.1 Discussion 7.1.1 Role of credit ratings In a perfect world, a credit rating reflects the full range of credit risks underlying ad os encoutr i(tfyu. l lHy o) ws ee ve emr, tion bper aicnt ci coer pt ohreartee di s i na wt hied es ercaunrgi et i eosf’ rcirsekdsi to rbastei rnvgesd. t h a t 85 Yet despite extensive criticism, CRAs continue to retain an important function as ct he en tpr ar ul de ne nt ittiiaels rieng tuhl ae t fi ionna nocf i fai lnma nacrikael tisn. sFt oi tru ti ni osnt as nacned, cpr el adyi tar as itgi nngi fsi caarnet ursoel de ii nn ibnyv eCsRt mA se ncta dn e ct hi sei or enfso roef bh oa vn ed hmuagrek eat npda rpt iaci inpf aunl t sc .o An sneyq mu ei ns cc ae lsc uf loart i or eng ou fl art iosrkss, it no vae sltaorrgse, ae nx tde na tl s do ufroirn gt hteh ef i ngal onbc ai al l f si nyas nt ecmi a l acsr ai s iws .hTool e a, vwohi di c ht h we saes eevxeenmt sp lfirf oi emd happening in the future, CRAs are considerably more heavily regulated after the global financial crisis. In this dissertation, we have investigated how effective tahreesseurltu.les and regulations are and if the market does indeed function better as Wp rei c si nt agr ts ebcyu ri ni tvi ee ss t ai gnadt i snhgotwh et he ax tt etnhte yt o i nwdhei ec dh di nov er es tl yo ros nr er layt i onng sc ri ne ddi te treartmi nignsi ni ng tchr ee di ri t rreaqtui ni rgesdi ny itehl ed .UInnitteerde sSttiantgelsy, r ewl ae t iovbe steor vt he ea Ehuirgohpeera nd emg raerek eot f. Hr eolwi aenvceer, oi nn b( soeteh Cmh aa rpkt ee trs2i )n. vTe shtios rsshsotwi l ls steheamt r taot i rnegl sy aorne cs rt ei l dl iwt irdaet il yn guss ea dt t aa cnhderde lt ioe ds eucpuor ni t ibe ys investors to make investment decisions. As such, it is of the utmost importance that ratings adequately reflect the underlying credit risk of securities. 85 As pointed out in Chapters 2 to 6 of this dissertation. Chapter 7 - General Discussion and Conclusion
RkJQdWJsaXNoZXIy MTk4NDMw