In its settlement with the Department of Justice, S&P has backed off its assertion that the federal lawsuit was filed in retaliation for its 2011 downgrade of US Treasury debt. Continue ReadingS&P Settles: Now How About that US Bond Rating?
Credit rating agencies have historically failed to anticipate the public debt crises in rich countries. This Wikirating blog article describes how Moody’s sovereign rating methodology has been modified in the Continue ReadingHow Moody’s has drawn the lessons from the Eurozone debt crisis
This column explains how and why sovereign ratings and bond yields failed to anticipate the Eurozone debt crisis. It also argues that, paradoxically, sovereign ratings are now valuable risk indicators Continue ReadingEurozone, Sovereign Ratings and Bond Yields
Regulation (EU) no. 462/2013 of the European Parliament and of the Council of 21 May 2013 requires credit rating agencies to publish a calendar of their sovereign and subsovereign rating Continue ReadingIs the Eurozone Debt Crisis Over? The View from Moody’s
On November 28, 2001 Enron lost its investment grade credit rating. Four days later, the company filed for bankruptcy. Those awaiting a similar collapse after Puerto Rico’s descent into junk Continue ReadingPuerto Rico Rating Downgrades: Enron Redux?
Last week Roland Berger announced that he did not received the needed funds to found an European rating agency (see http://www.bloomberg.com/news/2012-04-15/roland-berger-is-short-on-ratings-agency-startup-cash-ftd-says.html). Did you wondered why? Why are the investors not Continue ReadingWhy an European Agency cannot be founded