Comparison of credibility (accuracy) of S&P and Moody's ratings before Literature review

Comparison of credibility (accuracy) of S&P and Moodys evaluations before and afterward the US fiscal crisis - Literature review ExampleThese military rank systems invite alike influenced the U.S capital markets by enable the U.S monetary markets to examine the credit risks. S&P and Moodys ratings play significant roles in the capital markets thus, the rating agencies employ them in bar the expected financial losses (Langohr and Langohr, 2008). This is crucial because they enable the financial market to respond to financial jeopardy or risks. This is through establishing regulatory approaches that protect the financial markets from incurring losses. S&P and Moody much provide financial analysis to the analysts and issues standard public financial statement of the U.S banks on credit conditions. They also carry out credit ratings in order to offer investors with adequate information hence enabling them to overcome credit crisis. Moreover, they have influenced the US financia l market by enabling them to make financial analysis in order to determine the strength of banking institutions. They have enabled them to split bonds and rate the financial institutions against distributively other in order to determine their performance level. ... Thus, through S&P and Moody rating services, the U.S financial institutions have enabled to improve their business performance level. Literature Review on the Methodology Changes of S&P and Moodys After All the Criticism It Has Faced On Their In Credibility and Accuracy of Their print Ratings Varied literature have attempted to reveal the methodology changes of S&P and Moodys after they faced varied criticism on their credibility and accuracy issues. They have make immense efforts of becoming more cautious in order to recover their reputations after the criticism during the juvenile financial crisis. The S&P and Moodys, as well as, other credit rating agencies have been a assailable of controversy thus, they have be en criticized for not being accurate and credible. These agencies faced severe criticism especially during the recent rise of gasoline in the U.S that contributed to a global financial crisis (Eccleston, 2013. However, the credit rating agencies have made significant attempts of making changes in rating system thus, they have focused on creditworthiness, which has become the headstone aspects in the financial markets. S &P have attempted to implement varied methodologies and this has changed drastically after the 2007 to 2008 global financial crisis. Before the crisis Moodys employed RiskCalc model for estimating private industries default risks. However, the current regulatory approach, which is characterized by capital ratios, stress tests among other methodologies makes it necessary in rating activities. Anand and Subramanian (2013) reveal that S&P and Moodys have made significant efforts of responding to criticism by increasing the regulatory use of ratings in order to degrade financial risks. This regulatory