The history of Credit Rating Agencies (CRAs) is a tale of how "opinions" evolved into the bedrock of global finance, transforming from simple guidebooks into powerful gatekeepers that can decide the fate of entire nations. 🚂 The Birth of the Industry (1900s–1920s)
: Agencies held "investment-grade" ratings on Enron just five days before it declared bankruptcy. credit-rating-agencies
The story begins with the American railroad boom. Investors were pouring money into tracks they had never seen, and information was scarce. The history of Credit Rating Agencies (CRAs) is
Lawmakers called it a "colossal failure" of due diligence and warned of "huge conflicts of interest" inherent in the issuer-pays model. 🌐 The Modern Gatekeepers (Present Day) credit-rating-agencies