Data disruptors face uphill battle to overcome credit ratings stagnation
With traditional ratings agencies facing increased hostility from financial firms, new entrants are hoping to reshape ratings. But will fresh approaches appeal to an industry underwhelmed by existing offerings?
Concerns over cost and the lack of competition in the world of credit research and ratings are prompting the creation of new services designed to shake up the status quo. But with many firms seeing ratings as a “check-the-box” compliance cost rather than a revenue contributor, there seems to be little appetite to embrace new models or providers. However, some still see the potential to disrupt the ratings business.
In the US, there are currently nine registered nationally recognized statistical
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