by Rishi A.
Credit Rating Agencies are creating a lot of news of late. The Russian Central Bank, recently, decided that it wouldn’t use credit ratings issued by any of the western rating agencies like, S&P’s, Fitch or Moody’s. In February, this year, S&P’s paid close to USD 1.4 billion in a settlement with the United States Justice Department. The settlement meant that the credit rating agency was responsible for not taking into consideration the risk associated with residential mortgage-backed securities before the 2008 crisis.