sharing in governance of extractive industries
Credit rating agencies (CRAs) have come under scrutiny in recent years for the qualitative judgements they make in their credit ratings, particularly of governments. CRAs are independent agencies that provide assessments of how likely governments or companies are to repay debt.
The CRAs’ work is crucial for the market. They analyse not only the performance of the economy, but also the strength of government institutions and fiscal improvements.
CRAs already rely on information from third parties, such as the World Bank’s Governance Indicators, in forming their opinions of the quality of institutions and other qualitative factors.
A new EITI Brief details the uses of the EITI for credit rating agencies, ranging from providing market information to financial data, and invites rating analysts and investors more broadly to take active participation in the EITI process both at country level and globally.
This news first appeared on eiti.org on 31 August 2015.
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