This could result in furthering a certain kind of herd behaviour among all the businesses depending on the phase of business cycle. Reliance on ratings The rating agencies have already received their share of blame for the crisis.
That’s the easier part; the difficult part is to find viable alternatives – the rating agencies were part of a big machine that was working well as long as the going was good. Obviously, any alternative framework has to be in sync with the changed realities of the market. Its will not be possible to think of any changes in this regard in isolation.