This too has its challenges since in many instances pricing is based on a risk rating, itself the product of analysis of information that has been provided to the ratings agency by the specific issuer. Following the sub-prime fallout, the validity of ratings, rating agency modeling, methodology and their compensation has been called into question.
Therefore, any enhanced programme aimed at improving the governance of the global financial system may require some changes to the ratings infrastructure and the extent to which ratings reflect risk and are not overly influenced by massive corporate profits of high-risk institutions.