Dynamic of the Rating Agencies Activities in Russia
The growth of the number of Russian agencies ratings has been significant in recent years. Four Russian rating agencies achieved registration in the Russian Ministry of Finance as well as three international ones. Due to this fact, the question of the integration of these agencies’ efforts and comparison of their rating scales is important. As for now we have nearly 700 ratings for banks only. We observed a threefold growth in 5 years (2006-2011). We also see that the number of ratings given by Russian agencies is roughly similar to the international agencies’ ratings (Kaminsky et al. 2011b).
Despite the comparative growth in the number of ratings, the rating methods are largely unclear, and expertise plays a significant role. This hinders the usage of ratings for risk evaluation and decision-making even at the state level. It is the reason for interest in the creation of internal ratings and model ratings.
Our long-term goal is to research the possibility of forecasting company ratings based solely on publicly available information, including indicators from international financial reports and market conditions on stock exchanges.