Did Credit Rating Agencies do good work (with impact on the Qatari Term Paper

Did quotation Rating Agencies do good work (with impact on the Qatari Context) - Term Paper casingThe investigate get out analyze the qualitys and benefit of CRAs in the last financial crisis of 2007 2009. The research willing issue evidence of the financial crisis on the credibility and accountability of credit judge agencies. The credit crunch will be explained and to a fault the contribution of credit rating agencies to the financial crisis. The benefit of credit rating agencies to investors is also discussed in the paper. The research methodology and design and reporting and analysis will be dealt with by the research paper. The role of credit rating agencies during and before the financial crisis will also be discussed in the paper. The logical implication of the financial crisis in the economy of Qatar will be discussed a bit to establish the impact of it is on the people. Contents Abstract 1 Contents 2 Introduction-What Is book of facts Rating? 3 Research Objectives 4 Literature Review 4 Role of Credit Rating Agencies During and Before Financial Crisis 6 Credit Ratings Assignment Process 7 Research Methodology and Design 8 Reporting and Presentation of the escort 9 Credit Rating Agencies as Coercive Regulators 10 How CRAs Impact On Financial grocery Participants 10 Relation between Credit Rating and Agency Problem 11 Implications of Financial Crisis on Qatars Economy 12 Conclusion 12 References 13 Introduction-What Is Credit Rating? Crediting rating is a common statement that refers to opinion concerning a debt agent and its issuer company. It gives an investor a clear indication on whether the debt instrument is safe or perily. It also tells the investor the capability of the issuer company to pay interest and the principal amount in time. However, credit rating is simply an opinion rather than a recommendation and thus does not use up an investor to buy or sell an instrument. Currently, global rating is undertaken by several credit rati ng agencies with the common ones are Standard and Poors (S&P), Moodys Corporation both of whom are ground in the USA and Fitch Rating Firm. The above named rating agencies hold the majority of the credit rating share. However, there are more than 100 minor credit rating agencies in the market religious offering quality credit rating in national markets and industries (Benmelech 2009). Credit rating is usually done by experts who examine various factors and provide the rating is expressed in either alphabetical or alphanumerical symbols. AAA is the highest possible rating as per the S&P agency. High quality credit investiture grades are grades AAA and AA whereas grades A and BBB offer medium credit quality investiture grades. However, grades BB, B, CCC, CC and, C means that the issuer has a low credit quality and maybe there is no existence of investment credit quality. Grade D is the lowest possible credit rating, and this means that there is no way that the creditor will rec over his interest plus the principal amount. According to this credit rating, those companies with AAA, AA, A and, BBB grades presents less risk and thus most investors will be attracted to invest in them since they have assurance that there will be a gain in their market share. Credit Rating Agencies (CRAs) plays a bigger role in todays financial markets in Qatar. The rating is normally followed closely by the investors, issuers, borrowers and presidencys financial institutions. Research Objectiv