Question 3 (Total: 30 marks) The Big Three global credit rating agencies - U.S. based Standard and Poor's (S&P), Moody's and Fitch Ratings - have come under intense scrutiny in the wake of the global financial crisis. Instead of providing investors with reliable information on the riskiness of various kinds of debt, these agencies have instead been accused of exacerbating the financial crisis and defrauding investors by offering overly favourable evaluations of insolvent financial institutions and approving extremely risky mortgage- related securities" Examine the importance of credit ratings to corporations and governments and factors to be considered to raise money in the capital markets and enhance investors' confidence in these markets. (30 marks) END OF PAPER - Page 2 of 2