Standard&Poor’s, Moody’s and Fitch which their foundations date back in the middle of 1800s and known as credit rating agencies are operating as the most dominant institutions nowadays . The existence of these three institutions as the most important ones among credit agencies proves that the capital markets are under the tutelage of them. Prepared reports and determined rating notes by those agencies are of vital importance for specifically emerging countries that need to attract foreign capital investments in order to generate economic growth and development. The reports direct capitals of developed countries and provides upward contribution to capital inflows into developing countries. Aforementioned upward contributions are merely valid under the circumstance of realistically run reports and a way far from political facts. Neverthless, the reports are contentious since they are closely associated with political facts and unsubstantial. It might be mentioned that credit rating agencies compile reports mostly to a relationship based on self-interests by not acting objectively. Because they look out of themselves rather than countries’ and companies’ interests. As a consequence of this situaiton, they are not ethical at all. Apart from it, the nonexistance of any international establishment or institution which might inspect the credit rating agencies can be described as another problem.
Credit Rating Agencies, Rating Reports, Country Economies, Ethical Problems