Credit rating agencies are being blamed for failing to warn investors quickly enough of problems in the subprime mortgage market, but there may be more chapters to be written before the end is known for sure in this credit cycle.
With a wave of borrowers defaulting on subprime home loans, and two hedge funds managed by Bear Stearns suffering losses on bad bets on subprime-related securities, some on Wall Street and on Washington's Capitol Hill are criticising rating firms Moody's Investors Service and Standard & Poor's for retaining top grade ratings on many affected securities.