Study On China's Third Party Credit Rating Market On The Background Of Financial Crisis

The three Credit Rating Agencies(CRAs)---tandard & Poor's, Fitch, Moody's have rich " Reputation Capital" accumulation in the development process of financial market for nearly a century, which was put an end to space in the Financial Crisis yet. Since the outbreak of Sub-prime Crisis from 2007, as a result of its "Domino Effects", the crisis has developed rapidly into global financial crisis. The Credit Rating Agencies have been widely criticized, because of their breach of duty to disclosure credit risks of securitized products in time.In order to resolving the inherent problems of credit rating industry in this financial crisis, the regulatory authorities of America and European Union have launched a full-scale investigation and have taken appropriate reform measures. Meanwhile, credit rating agency is also faced with its own self examination and reform. The regulate operation of credit rating industry in must be carried out. China also held a forum of the status and role of credit rating industry after financial crisis during January,2009, which tabled some proposal for Chinese credit rating market. China is not ripe for the industry in term of rating, so drawing on lessons from sub-prime crisis, the reformation of credit rating system is in ready and able.This paper disclosures the inherent problem of credit rating industry by the data Statistics and Analysis for many performance of the credit rating agency in this financial crisis. Then by the study of the development situation and limitations of Chinese credit rating market, and using the reformation experience of regulatory authorities and agencies for reference, the author provide reform model for industry to select in the future.