The research will evaluate recent reforms to CRAs. CRAs have been criticised for conflicts of interest, lack of transparency, poor communication, cliff effects and related overreliance on ratings by users. In response, several policy actions occurred and new legislation was passed in the USA and Europe. The overall objective of the regulatory changes is to reduce the impact of rating actions in financial markets, especially the mechanistic reactions induced by hardwiring and cliff effects. These regulatory changes are ongoing, and aim of this research is to conduct analysis on the impact of regulatory change on banks and financial markets. Concerns exist that the latest proposed European regulations could further undermine economic competitiveness. This work will evaluate whether the regulations achieve their aims, or whether they will lead to unintended consequences.