Credit Rating Agencies
What role do credit agencies play, and will regulation curb their excesses?
During the past decade, credit rating agencies have come under intense scrutiny, first for their failure to identify corporate governance disasters such as those at Enron and Worldcom, and second for their role in rating structured finance products in the lead up to the global financial crisis.
A recent announcement by the Canadian Securities Administrators has suggested that the path forward in Canada involves a new regulatory regime for credit rating agencies.
In this webinar, Professor Purda will discuss:
- Whether the steps undertaken by policymakers are likely to bring about effective change
- The role of rating agencies and how they have come to maintain their current position of influence
- The accuracy of credit ratings and how their role may vary across countries and industries
- The solutions proposed and their chances for success
- What research remains to be done
Session Leader
Dr. Lynnette Purda
Lynnette Purda is a Professor and Associate Dean (Graduate Programs), RBC Fellow of Finance at Smith School of Business. She obtained her Ph.D. from the Rotman School of Management at the University of Toronto in 2003 and holds a Bachelor of Commerce (Hons.) from the University of Manitoba. In 2000, she received her Chartered Financial Analyst designation.
Professor Purda’s industry experience includes a position in investment banking with Nesbitt Burns. During her time with Nesbitt she participated in mergers and acquisitions, seasoned equity issues and divestitures. Her research lies in the area of empirical corporate finance, particularly aspects of corporate debt policy, credit ratings, and corporate governance. Some of this work has been published in the Journal of Financial Research, the Journal of Multinational Financial Management, and the Canadian Tax Journal. Professor Purda has also been recognized for her dedication to teaching with nominations for the Commerce Award for Teaching Excellence at Queen's University.