2. The Importance of Rating and the Disadvantages of Existing Rating Systems

Rating is one of the most important instruments for regulating financial markets, the main task of which is to assess the quality of assets taking into account risk factors, conducted by independent experts. Ratings characterize the creditworthiness of the borrower, predict trends in it, or characterize the investment attractiveness of the project. They play an important role in decision-making, in establishing and maintaining business relationships. We will consider two types of ratings: credit rating and investment attractiveness rating (although there are other types of credit ratings: ratings of banks and banking groups, insurance companies, issues of financial instruments, regional and municipal authorities, and others).

The analysis of methodological and systemic deficiencies in the existing credit rating of non-financial issuers has been conducted by us and the disadvantages of existing rating systems are discussed in detail. We have analyzed the methodology of the Big three (Standard & Poor’s, Fitch, and Moody’s) and Russian national rating agency ACRA.