The role of Rating Agencies in the Debt Crisis

Abstract

As a result of the crisis, criticism of the Rating Agencies have again revived. Although the methodology of the agencies cited a broad set of variables for determining ratings, the rating downgrades seem to occur to the thread of events in times of crisis, outside the methodology of the rating agencies. The article discusses these issues and identifies the inability to discriminate between many degrees as accredited agencies raised and how they have changed the qualifications for financially troubled countries in Europe in terms of the evolution of the spread.