Credit rating agencies still vulnerable to new biz risks, say experts

Agencies insist they have improved supervision and governance

Credit ratings agencies (CRAs) are in the spotlight, even though several measures have been initiated to fix the issues plaguing them. Some challenges that arose during the global financial crisis in 2008 are still unresolved, while developments that led to the threat of the revocation of licence of a major market intermediary indicate that lapses remain in the rating process.

Rating firms maintain that they have made an effort to address the issues, including going for external hirings and using leveraged technology to ensure that the entire process is seamless and automated.

However, industry experts say that CRAs still lack