| HBS Case Collection
(Revised from original 2011 version)
Kroll Bond Rating Agency
The established credit raters were criticized for inflating the mortgage credit bubble that imploded in 2008. A new rating agency, KBRA, is considering how to capitalize on the opportunity this presents and how to enter the industry. A small group of managers have to decide on a business model, how to meet hiring and funding needs, and what types of ratings to start with: municipal, corporate, or structured. Where are the needs for new ratings stronger? How can investors be convinced to use the new ratings? How can KBRA compete with Fitch, Moody's, and S&P?
Keywords: Financial Instruments;
Financial Services Industry;
Becker, Bo. "Kroll Bond Rating Agency." Harvard Business School Case 212-034, April 2013. (Revised from original October 2011 version.)