Rethinking the Relevance of Existing Credit Rating Agencies to BRICS
12. May 2017
Global growth is expected to experience an uptick this year due to renewed economic activity in the emerging and developing market economies. These economies have large investment requirements for infrastructure development and maintaining a sustainable level of economic growth—for which they are dependent on international credit markets. With the growing need of economies to borrow capital abroad, the role of credit rating agencies—most of them, based in the West—has expanded multi-fold. This paper by the Observer Research Foundation explores the state of play of global credit rating agencies in the context of the macroeconomics of emerging market economies. It examines the various criticisms levelled against the credit rating agencies and provides recommendations on a potential, alternative model for BRICS.