Different Perspective
The outburst of the Global Financial Crisis in 2008 was the reason behind the emergence of the idea regarding establishing a credit rating agency (Tassnief) that threatened the collapse of large financial institutions and the drop of the stock market around the world. The crisis contributed to the failure of key businesses, declines in consumer wealth and economic activities leading to the recession between 2008 until 2012. Questions regarding bank solvency, declines in credit availability and damaged investor confidence affected the global stock markets where securities suffered massive losses during 2008 and early 2009. As a result, economies worldwide slowed down during this period, as credit was tightened and international trade declined.
Additionally, Simah has different perspective regarding the necessity of credit rating agencies within the Kingdom as it viewed them as gatekeepers that their expertise as credit rating agencies will significantly determines credit worthiness of an establishment in which has become more valuable as the financial market has grown in complexity with new and innovative instruments. Thus, it becomes a necessity to safeguard the resilient economy of the Kingdom from being affected by the same cause.