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This refers to “Investing faith in rating agencies” (Business Line, November 21). Two issues arise. One, the author seems to claim that the practices and methodologies adopted by Indian rating agencies are superior to those of the Big 3 in the US — S&P, Moodys and Fitch. Since the Big 3 in India are either owned or have collaboration with the US agencies, this claim seems somewhat unsustainable.

Two, if the rating agencies have such a splendid record, why not accept financial liability for mistakes, if committed Auditors also suffer from the same problem of user not paying for the product. But, statutory auditors are financially liable for their wrong actions, to the users. Credit raters also should accept financial liability if at all their ratings are proved to be faulty.

R.Viswanathan Chennai

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