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Why a group of investors should pay ratings agencies to end bias

16 1 3
15.02.2019

It is a fact that ratings agencies haven’t exactly covered themselves with glory; their assessments have often been way too optimistic, to put it mildly. And their alerts and rating changes usually come way too late, leaving investors like sitting ducks. In some instances—like with IL&FS—the agencies seem to have had no idea whatsoever of the goings-on in the company or they simply decided to look the other way.

Some of the blame for this must lie with the regulator since there seems to be no penalty whatsoever for the poor assessments or the delayed alerts. But it is not as though the investors are completely blameless; dishonesty among fund managers is not exactly unknown. Which is why, the system needs to be revamped and it is good news........

© The Financial Express