The Big Three credit rating agencies put Greece, Ireland, Portugal and Spain at a significant disadvantage during the European sovereign debt crisis. Their strong infl uence is likely due to the importance given to credit ratings by financial regulations. Both the EU’s credit rating directive and the Ratinggesetz of the German Bundestag assert that their objective is to markedly reduce this infl uence and allow for greater weight to be placed on fundamentals. They should pursue this objective vigorously.