Big Three (credit rating agencies)

The Big Three credit rating agencies are Standard & Poor's (S&P), Moody's, and Fitch Group. S&P and Moody's are US-based, while Fitch is dual-headquartered in New York City and London, and is controlled by the France-based FIMALAC. The European Union has considered setting up a state-supported EU-based agency.[1] In 2001, Moody's and Standard & Poor's market share was around 40% each, and Fitch's market share was around 15%; the Big Three therefore held 95% of the market.[2] However these figures understate the dominance of Moody's and S&P, since the norm for debt issuers is to obtain ratings from these two, and only occasionally turn to Fitch, for example if Moody's and S&P disagree.[3]

From the mid 1970s until early 2003, the Big Three were the only "Nationally Recognized Statistical Rating Organizations (NRSROs)" in the United States.[3]

References

  1. ^ The Times, 3 June 2010, Europe launches credit ratings offensive
  2. ^ Hill, Claire A. (2002), "Rating Agencies Behaving Badly: The Case of Enron", Conn. L. Rev. 35, 1145
  3. ^ a b Hill, Claire (2004), "Regulating the Rating Agencies", WASHINGTON UNIVERSITY LAW QUARTERLY, 82(43), p44