The regulation of credit rating agencies and their activities has been evolving significantly in recent years as the response to difficulties experienced during the economic crises. According to number of post-crises analysis, it is claimed that rating agencies played a role and are guilty for much of the crisis events. Until then the regulators somehow neglected to regulate these financial market entities, despite the important role they perform in the whole financial system. The paper addresses the background and process of assigning sovereign ratings, role of sovereign ratings on the financial marketand current regulation on providing sovereign rating in the European Union. The aim is to confirm or disprove the benefits of restrictions put on sovereign debt ratings by the European rules using mostly the descriptive and empirical method. "This is a targeted publication on the one topic (Financial Law). It has been requested for inclusion in WOS."