Sub-prime Mortgage Crisis and Its Implications for Credit Rating Industry in China

Information of risk provided by credit rating agencies plays an important role in protecting bond investors from loss who are absence of information.With the globalization of modern financial system and so many investment institutions involved,the American Sub-prime Mortgage Crisis is spreading quickly all over the world and developing into a global credit crisis,in which credit rating industry used to be trusted is being criticized severely.This global credit crisis has some implications for improving the credit rating system of bonds market in China.