Dodd-Frank Act: Why Credit Rating Agencies were Addressed
Interactive

Dodd-Frank Act: Why Credit Rating Agencies were Addressed

Intuition Publishing
Updated Sep 25, 2020

As financial markets have grown and developed, credit analysis has become more sophisticated and expensive. Many market participants aren't in a position to perform such analysis themselves and therefore rely on credit ratings from independent rating agencies. The Dodd-Frank Act enhanced the regulation of these entities. Here we explore the basics of credit rating agencies and the motivations for changing the way such firms are regulated.