CREDIT RATING AGENCIES IMPACT ON THE GLOBAL FINANCIAL MARKETS

Abstract

The article covers the big three credit rating agencies activity – S&P, Moody's and Fitch, which assess the solvency of the debt securities issuers. These credit rating agencies have considerable influence on the investors' decisions, creating the conditions for deliberate manipulation on the global financial markets.

This paper considers situations where credit rating agencies are highly likely to be involved in manipulation on the financial markets by publishing negative information about the debt issuers and the country's economy as a whole. In addition, the study examines the consequences and damage from these actions. The antimanipulation measures of the Russian Federation were studied and based on the results of the analysis, the possible mechanism was presented to decline the probability of manipulation at the global financial markets.

Keywords: S&P, Moody's, Fitch, manipulation, credit rating Agency, financial market, bond, issuer of securities.