Credit Ratings Reform

Credit ratings reform refers to the changes made to how credit rating agencies evaluate the creditworthiness of borrowers, including governments and corporations. Following the 2008 financial crisis, concerns arose about conflicts of interest and the reliability of ratings. Reforms aimed to enhance transparency, improve the quality of ratings, and reduce reliance on credit ratings in financial regulations. These changes help investors make informed decisions, promote competition among rating agencies, and aim to foster a more trustworthy financial system overall.