Globalization has removed the boundaries not only in capital markets but also in commercial markets. This situation has made it easier for international investors to make capital investments all over the world. An investor anywhere in the world can invest in any investment instrument in anywhere around the world.One of the most important organizations providing the necessary information to the investors is credit rating agencies.The credit scores given by the credit rating agencies play a very significant role in investors’ making decisions for their investments.While the scores given by credit rating agencies help some countries to get rid of financial crises,they lead others into financial crises. In this study, the past, the present and the future of credit rating agencies have been examined in three sections. In the first section, some information has been given about the definition of credit rating, the history of credit rating, the causes of a need for making credit rating and the role of credit ratings in financial markets.In the second section, the effects of the credit rating scores given by credit rating agencies on the financial markets and on the economies of some countries have been analyzed in the light of the economic data from the US and Europe and some information has been given about the present situation of the credit rating agencies all over the world.In the third section ,the problems caused by credit rating agencies have been mentioned and some predictions have been made about the future consequences of them in the light of experts point of view.In the last section, related thoughts and suggestions have been put forward.
Keywords: Credit, Rating Agencies, Credit Rate, Finance