Azerbaijan, Baku / Trend / The international rating agency Moody's Investors Service is considering the opportunity of reviewing its system of agency issues ratings regarding financial tools. The company is likely to review the system because rating agencies have recently been accused of failure in their assessment of the subprime crisis, Reuters quotes the British media, according to RBK.
According to the Director of Moody's, Bryan Clarkson, the agency is developing instruments to enable assessment of risks connected to liquidity, and the agency does not rule out that liquidity risks will be publicized by Moody's along with credit ratings.
At the same time Clarkson denied numerous accusations with respect to rating agencies issuance of high ratings to several assets which dropped as a result of the mortgage crisis in the USA. Ratings cannot take into account the possibility of cardinal changes in markets, he said and again stressed that agencies are not responsible for how rating companies operate with issued ratings.
After the effect of the subprime crisis became evident, international rating agencies were accused of not reacting rapidly and appropriately enough to the first signs of the mortgage companies at the end of the 1st quarter of 2007 regarding the rapid increase in defaults in subprime mortgages. As a result, EU and US regulating bodies began to investigate the purpose of which was to change the 'rules of the game' for rating agencies in order to provide a more objective and adequate rating system.