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Credit Rating Agencies rate the credit-worthiness of securities instruments. The reason for doing so is for investors to gain confidence that what they are buying is what they think it is. The big players in the industry (pension/insurance funds) have mandates which prevents them from investing in securities below a certain rating. You could say that they act as a means of protecting society from excessive speculation using 'social' funds (pension/insurance) by fund managers who are out to speculate short term by taking excessive risk. Duncan of Canary Wharf

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Q: What is function of credit rating agency?
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