The Private International Law Framework for Credit Ratings (An Analytical Study)

This article analyzes the legal framework governing private international law in addressing cross-border disputes over credit ratings, highlighting the experiences of the United States and the European Union as important models in this context. It seeks to examine the significant damages that investors harmed by erroneous credit ratings may suffer, and the difficulties they face when attempting to seek compensation against credit rating agencies. The challenges facing these investors are not limited to the difficulty of proving damages or the requirements of substantive law, but extend to a broader framework related to the regulatory constraints of private international law, with the exception, to some extent, of the uniform American and European legal system of civil liability, as stipulated in Article 35/A of Regulation (EC) No. 1060/2009. However, the problem continues to be exacerbated by the lack of clarity in determining the applicable law, in addition to the international system's lack of uniform mechanisms for determining the competent court and settling cross-border disputes within the field of financial markets law. In this context, this article examines potential options for reforming private international law rules, with the aim of enhancing investors' access to justice in disputes with credit rating agencies.