CGFS releases report on role of ratings in structured finance

Press release  | 
17 January 2005

The Bank for International Settlements is today releasing the latest report from the Committee on the Global Financial System (CGFS)1 entitled The role of ratings in structured finance: issues and implications. The report highlights several of the characteristics of structured products, challenges arising for the rating agencies and other market participants, and implications for central banks and investors. It is now available on the BIS website at

The report has been prepared by the CGFS Working Group on ratings in structured finance, established to explore the role of rating agencies in the rapidly evolving markets for structured finance instruments. To facilitate a better understanding of this role and of structured finance markets more broadly, the Working Group has sought to identify and explain methodological differences that exist between the rating of structured finance instruments and more traditional credit products. Furthermore, the Group explored the various methodological and organisational challenges involved in rating structured finance products.

Documenting the Working Group’s findings, the report complements earlier work by the CGFS and other official forums, such as the Joint Forum. The Working Group comprised representatives of 16 CGFS-participating central banks and the BIS and was chaired by Peter Praet of the National Bank of Belgium. The Working Group’s members are listed in the report.

Specific questions regarding the report may be sent to the CGFS by e-mail ( or fax (+41 61 280 9100). For further information or to request a printed copy, please phone the press enquiries number given above.

1 The Committee on the Global Financial System is a central bank forum established by the Governors of the G10 central banks to monitor and examine broad issues relating to financial markets and systems. Its mandate is to elaborate appropriate policy recommendations to support central banks in the fulfilment of their responsibilities with regard to monetary and financial stability. The Committee is chaired by Roger W Ferguson Jr, Vice Chairman of the Board of Governors of the Federal Reserve System.