Instead of charging investors for manuals, agencies began charging the companies and governments being rated.
By the early 21st century, CRAs were rating complex financial products, like mortgage-backed securities, with the highest "AAA" grade. credit-rating-agencies
This created a permanent seat at the table for the : S&P Global Ratings (0.5.36), Moody’s Investors Service , and Fitch Ratings . 💥 The "Colossal Failure" (2000s) Instead of charging investors for manuals, agencies began
The story begins with the American railroad boom. Investors were pouring money into tracks they had never seen, and information was scarce. Instead of charging investors for manuals
What started as a helpful tool became a regulatory requirement.
: Their ratings (like AAA or BBB-) determine how much a country like Greece or a company like Apple pays to borrow money.