Credit ratings agencies: What are they and do they have too much control?

Thursday, 09 February 2012 12:36

As Europe tries to rescue itself from the brink of economic failure, more and more power is in the hands of the credit ratings agencies, whose verdicts can make or break a country. But what are they, what do they do and do they have too much control?

Following the recent downgrading of the French and US governments by Standard & Poor's, there has been an intense focus on the role and influence of credit ratings agencies.

But, while we may be familiar with AAA ratings and the 'Big Three' – S&P's, Moody's and Fitch Ratings – is any of us sure what these agencies do?