Critical perspective and concluding remarks

‘Critical perspective and concluding remarks’, concludes that although most people would agree on the need of supervising credit agencies for the sake of improving their governance and decreasing their hegemony on the world credit rating market, most continue desperately to rely on them for their credit risk assessment and wonders the reasons for such strong addiction. This conclusion presents some closing thoughts on the concepts covered in the preceding chapters of this book. The book discusses the dilemma facing the international standard-setter with regard to Big 3 governance and their control over the rating market. Credit ratings are supposed to improve the efficiency of the market by reducing the informative asymmetry and its cost; indeed, individuals, firms and institutional investors find it useful to be guided by a rating, when making their investment decisions. The book explains the Big 3's longevity, despite multiple failures, and has the rating oligopoly that they were enjoying, which enforced by national and international regulatory agencies. The global rating market displays signs of disarray, and reduces the mechanistic and simplistic dependence on credit ratings for regulatory purposes. Investors should be encouraged to compare practices of ratings among agencies and allow smaller rating agencies, and newcomers to the rating market to build brands with observable differences compared to the Big 3. This conclusion presents some closing thoughts on the concepts covered in the preceding chapters of this book. The book discusses the dilemma facing the international standard-setter with regard to Big 3 governance and their control over the rating market. Credit ratings are supposed to improve the efficiency of the market by reducing the informative asymmetry and its cost; indeed, individuals, firms and institutional investors find it useful to be guided by a rating, when making their investment decisions. The book explains the Big 3's longevity, despite multiple failures, and has the rating oligopoly that they were enjoying, which enforced by national and international regulatory agencies. The global rating market displays signs of disarray, and reduces the mechanistic and simplistic dependence on credit ratings for regulatory purposes. Investors should be encouraged to compare practices of ratings among agencies and allow smaller rating agencies, and newcomers to the rating market to build brands with observable differences compared to the Big