The many ways of determining risk

corporate bonds

Although the credit rating agencies have taken measures designed to make them more effective credit watchdogs, it should be remembered they are only one of the ratings options available

After the collapse of Enron, credit rating agencies were heavily criticised by many, who claimed they had failed to warn investors of problems at Enron and in dozens of other businesses. Although the agencies said Enron failed to disclose serious book-keeping concerns to them, valuable lessons have now been learned and agencies maintain there are warning signs they look out for at companies they follow. Although the agencies have taken measures designed to make them more effective credit watchdogs, investors should remember ratings are not the be-all and end-all, and only represent one ...