The Study On The Reform Of U.S.A. Securities Credit Rating And Its Implications

The "subprime crisis" in U.S.A has fully exposed the defects of U.S.A. securities credit rating system. First, credit rating is a monopoly industry. Secondly, the serious conflicts of interest which caused by the issuers-pay model, business diversification, and the quasi-regulator status of credit rating agencies. Finally, serious moral hazard of the agencies because of its exclusion of liability.Credit rating agency reform act had been passed in 2006 in U.S.A. It tried to make a limited transformation of the system, but it seems to have little effect. Therefore, a thorough reform was made by Dodd-Frank Wall Street Reform and Consumer Protect Act. Internal isolation systems, compulsively information disclosure, reducing regulation independence are taken to strengthen supervision. Besides, the privilege which exempt from liability of investors of the agencies was repealed. The reform of issuers-pay model is still under discussion, and the way which the income of the agencies link to the rating accuracy should be the direction of reform in the future.In China, the securities credit rating system has the same problem. Therefore, we should use the reference that the experiences bring from U.S.A. securities credit rating system reformation.