Distinctive Aspects of Credit Rating Agencies' Civil Liability to Investors

The value of ratings for modern financial market should not be underestimated. Ratings provide investors with information on credit risk and are widely used for regulatory purposes on capital markets. However, ratings ultimately appeared to be false, have been involved in financial scandals (Enron, 2008 crisis) and caused significant damage to investors. All that raised a question is it possible for an investor to bring a private claim against credit rating agencies? This paper describes acts and omissions of credit rating agencies that give an investor a right to sue the agencies; certain distinctive aspects of proving elements of civil liability of credit rating agencies; allocation of burden of proof; economic aspects of credit rating agencies' business important for understating the rating procedure, possible areas of conflict of interest, damage that may be caused to investors; regulatory context of credit rating agencies' business. In absence of own court practice in Russia a great weight would be given to foreign experience.