NEW YORK, March 4 /PRNewswire/ — Appropriate regulation of credit rating agencies will play an important role in building confidence in the marketplace, especially if the purpose of this regulation is to ensure that rating agencies comply with policies and procedures designed to promote independence and objectivity, according to a white paper published by Standard & Poor’s. At the same time, the paper notes that as the financial markets have become increasingly global, a globally consistent regulatory approach is essential to the efficiency of global capital formation.
“Achieving consensus on the mechanics of such a globally coordinated regime is not simple,” said Deven Sharma, president of Standard & Poor’s. “However, such an effort is important if we are to arrive at a solution that works for users of ratings globally and that helps restore confidence in the global capital markets.”
The paper outlines 10 goals that investors and other users of ratings want to see from regulation, and which should guide the approach taken by policymakers internationally. To access the white paper click on the link: S&P White Paper