What effect will the new legislation likely have on the market share of the largest rating agencies?

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What effect will the new legislation likely have on the market share of the largest rating agencies? How will the new legislation affect the process of finding ratings information for investors?

Assessing default risk requires an evaluation of creditworthiness. Most investors have neither the time nor the expertise to do their own credit appraisals for potential bond investments, so they rely on credit-rating agencies for this service. But how reliable are their ratings?

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Principles of managerial finance

ISBN: 978-0132479547

12th edition

Authors: Lawrence J Gitman, Chad J Zutter

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