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Credit ratings agencies may need financial services licences to operate as the government looks to resolve concerns about the quality of ratings on structure finance products.
Speaking to the Australian Institute of Company Directors yesterday, senator Nick Sherry said; “We have examined the issue of the role of credit rating agencies in recent market volatility, particularly in relation to structured and securitised products,” The Australian Financial Review reported.
Mr Sherry also questioned whether it was appropriate that credit rating agencies continued to operate without an Australian financial services licence.
Credit rating agencies’ ratings have come under the spotlight following the US sub-prime fall-out and claims of inappropriate ratings on risky products.
The government’s review of credit rating agencies will be released within a fortnight.
Published: 05-11-08
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