Rating and Rating Agencies

Project investigator: Jun.-Prof. Dr. Stefanie Hiß
Funded by: Hans-Böckler-StiftungExternal link
Duration: June 2010-March 2011
Student Assistant: Sebastian Nagel

In the course of the global financial and economic crisis rating agencies have repeatedly been criticized. First, their too optimistic assessment of structured financial products' probability of default has contributed to triggering the financial crisis in 2007. Then, they have been accused of aggravating the crisis by downgrading the bonds of highly indebted countries such as Greece and Spain, thereby fuelling trading against the Euro in spring 2010. In particular, criticism has focused on the oligopolistic nature of the rating market, the conflicts of interests within the rating agencies, and the close ties between agencies and investment banks or bond issuers. The aim of the project is it to study rating and rating agencies from an economic sociological and political-economical point of view.