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No, the ratings agencies are private companies which charge the companies being rated for their services. They used to charge subscribers for information, but now those being rated foot the bill. I.e., if company X wants to sell bonds or whatever, it pays a percentage of the total offering to the agency in exchange for the rating. Add to that the fact that these rating agencies often offer consulting to the companies they rate. Finally, the rating agencies sometimes rate an instrument without being requested to do so. So there is always this threat of an "unfriendly" rating in case a company decides to take their business elsewhere.
Frank Partnoy has written extensively on the subject, and though I think he stops short of some of the interesting questions, a google search should find several of his articles on rating agencies and the conflict of interest they face.
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