BIS Review 42/2008  5  enough – investors also need to know how to interpret the information. Although credit-rating agencies have helped with interpretation in the past, they have recently come under scrutiny for their role in the financial market turbulence.
However, because rating agencies rely on their reputations, they have strong incentives to improve the information content of their ratings for complex financial instruments, to ensure that all material facts are disclosed in a concise and timely manner, and to address inherent conflicts of interest in the ratings process.