introduces strict liability for rating agencies. This liability proposal is at odds with the aim to strengthen competition in the … rating sector and could have a chilling effect on capital markets. The paper analyses existing rules on civil liability of …

This paper argues that a mitigated strict liability regime can incentivize Credit Rating Agencies (CRAs) to produce … order to avoid crushing liability. Moreover, CRAs are allowed to choose how much to commit to their predictions. CRAs may … opt out of liability even entirely, unless their ratings are relevant for regulation. Finally, corrections in the relevant …