The New Masters of Capital: American Bond Rating Agencies and the Politics of Creditworthiness. By Timothy J. Sinclair. Ithaca, NY: Cornell University Press, 2005. 208p. $29.95.

In his book, Timothy J. Sinclair makes a strong theoretical and empirical contribution to the growing political economy literature on the increasing influence of nonstate actors. More specifically, he draws upon a cogent interweaving of rationalist and constructivist approaches to reveal the various forms of power exercised by American bond raters, such as Moody's and Standard & Poor's. Moreover, by means of detailed case studies on the rating of corporations, municipalities, and national governments, he demonstrates the broad political implications of rating agency power in terms of both geopolitical and distributive questions. In both cases, Sinclair's central argument is that “rating agencies help to construct the context in which corporations, municipalities, and governments make decisions. Rating agencies are not, as often supposed, ‘neutral’ institutions. Their impact on policy is political first, in terms of the processes involved, and second, in terms of the consequences of competing social interests” (p. 149).