 "How to clean up the rating mess in India")
The role of credit rating agencies has been under the spotlight given the recent liquidity crisis that has hit the financial sector. While they can remain under pressure in the short-run given these developments, analysts remain optimistic on their long-term prospects. The optimism stems from the new set of guidelines set forth by the market regulator, which they believe, will tighten the weak links in their overall functioning and thus help in regaining the confidence from stakeholders.
Capital market regulator Securities and Exchange Board of India (Sebi) on Thursday introduced a “probability of default” mechanism to keep credit rating agencies
