Saturday, January 26

Islamic Finance and Credit Rating

For what it is worth, I agree with this. Credit Rating agencies have to take into account all material information while rating bonds. So why on earth can they say that they are rating everything except for whether they are sharia compliant or not? Well, if somebody withdraws the sharia fatwa, then the bondholders are sunk, so this evaluation by the credit rating agencies is crucial! If nothing else, it will force standardisation on the market and make the credit rating transparent.

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