Credit rating agencies perform an important role within the international financial markets? Required: a) Discuss the purpose and importance of a credit rating issued by a credit rating agency on a corporate debt issue from the perspective of both a borrower and an investor? b) Discuss why credit rating agencies may come under pressure to provide higher bond ratings? c)

Credit rating agencies perform an important role within the international financial markets?

Required:

a) Discuss the purpose and importance of a credit rating issued by a credit rating agency on a corporate debt issue from the perspective of both a borrower and an investor?          

    

b) Discuss why credit rating agencies may come under pressure to provide higher bond ratings?                   

c) Discuss the supervision mechanisms implemented by ASIC for credit ratings agencies operating in Australia?    

Expert Answer

The detailed answer for the above question is provided below: a ) Discuss the purpose and importance of a credit rating issued by a credit rating agency on a corporate debt issue from the perspective View the full answer