Our colleagues in Washington have done really great work when introducing this concept of an internationale non-profit agency. It is time for a change. We need more transparency about rating systems because their rating is essential for countries and the people living there!
Bertelsmann Foundation releases report on creating an organization for sovereign-debt ratings with more transparent and comprehensive criteria
WASHINGTON, DC (April 17, 2012) – In light of the intense criticism leveled against credit rating agencies for their perceived failure to analyze adequately sovereign creditworthiness, the Bertelsmann Foundation has developed a blueprint for an international non-profit credit rating agency (INCRA), whose rating criteria are designed to increase credibility and international acceptance.
“Faulty sovereign credit ratings contributed to the most recent financial crisis that threatened a global cataclysm,” said Bertelsmann Foundation President and CEO Gunter Thielen. “We need an additional, independent institution for sovereign-risk assessment, and we need to raise the quality of sovereign ratings.” The INCRA proposal is the Foundation’s contribution to providing a credible, practical and internationally inclusive method for increasing confidence in the financial sector and to preventing another crisis.