This article explores the evolving function performed by credit rating agencies (CRAs) in sovereign debt markets. The leading CRAs have recurrently been blamed for providing investors with inaccurate credit ratings. This study sheds light on the promise and perils of sovereign credit ratings in the light of the European sovereign debt crisis. Although this article shares concerns about poor rating performance and over-reliance on credit ratings, it questions the withdrawal of the regulatory use of credit ratings without their replacement with suitable alternatives.