Credit Rating Agency Reform Act

The Credit Rating Agency Reform Act is a law designed to improve the way credit rating agencies operate and are regulated. Credit rating agencies assess the creditworthiness of borrowers, like companies or governments, and their ratings influence investment decisions. This legislation aims to enhance transparency, accountability, and accuracy in their ratings, reducing conflicts of interest and preventing potential financial crises. It establishes rules for licensing, oversight, and registration of agencies, ensuring they follow consistent standards. Overall, it seeks to make credit ratings more reliable and trustworthy for investors and the financial system.