Comments on: Can we now admit it’s time to end issuer-pays credit rating model? On the Case Fri, 15 Jul 2016 20:42:45 +0000 hourly 1 By: EllieK Tue, 19 Feb 2013 11:24:38 +0000 It makes sense to consider an alternative to issuer-paid credit ratings for securitized transactions. That includes CBO’s, CLO’s and various asset-backed “products” that caused, and are continuing to cause us so much grief.

Structured finance is only one part of a credit rating agency’s business (granted, it is almost certainly the most profitable part). The bulk of S&P, Moody’s and Fitch’s ratings are for corporate bonds, public finance and ever-unpopular sovereign debt. I don’t see any obvious solutions to the issuer pays credit rating model. Rather, I don’t see any alternative that isn’t effectively passed on to tax payers, which hardly seems fair. How else could sovereign bonds be rated?