The credit rating agency, Standard & Poor’s Ratings Services, announced that it is taking steps to further strengthen its’ ratings operations.
The actions, which will be implemented throughout S&P’s global organization, include enhancements in four areas: governance, analytics, information and education.
S&P says it is implementing new measures that build on existing governance policies and protections to strengthen the integrity of the ratings process to ensure its independence, make the effectiveness of its’ governance even more transparent and to maintain investor confidence.
The firm is also taking steps to ensure that its’ ratings models, processes, and analytical talent are equipped to rate complex financial structures with increasing transparency regarding assumptions. It is providing market participants with greater transparency about the ratings process and greater clarity about the risks that could cause a change in ratings assumptions. And, it is undertaking an educational outreach program to help market participants better understand credit ratings.
“The ongoing transformation of the financial markets requires us to continue to bring more innovative thinking, greater resources, and improved analytics to the ratings process,” said Deven Sharma, president of S&P. “By further enhancing independence, strengthening the ratings process, and increasing transparency, the actions we are taking will serve the public interest by building greater confidence in credit ratings and supporting the efficient operation of the global credit markets.”
S&P to enhance its ratings process
New actions aim to increase transparency and maintain investor confidence
- By: James Langton
- February 7, 2008 February 7, 2008
- 10:53