Who are these credit rating agencies? (1)
This week, we had the news that the UK economy might lose its valued triple-A rating. The statement from the Moody’s credit rating agency put the UK on “negative outlook”, implying a 30% chance of losing its AAA credit rating within 18 months. But who are these credit rating agencies that have such power and influence?
Three companies absolutely dominate the CRA market: Moody’s and Standard & Poor’s market share is around 40% each and Fitch’s market share is around 15%, so that the Big Three therefore hold some 95% of the market.
There are a whole host of criticisms which can be made of the CRAs as explained here.