We are not sure what Moody’s is hoping to achieve with its “Bottom Rung” - a new quarterly publication that will flag US companies at risk of default.
Zero Hedge, which has obtained a copy of the Leper List, reckons it could be a shot at absolution after sleepwalking through the credit crisis.
Anyway, there are 283 companies on the inaugural list, including, unsurprisingly, most of the US motor industry - Chrysler, Ford Motor Company, General Motors - and a couple of airlines - UAL Corporation and US Airways.
Casino groups also feature prominently - Golden Nugget, Harrah’s Entertainment, MGM Mirage are all on the “Bottom Rung”.
But there are also some less obvious names which make it on to the ladder. These include, Arby’s, Barney’s New York, Claire’s Stores, Krispy Kreme doughnuts, Palm, and Unisys.
And inevitably, companies are already starting to complain.
Here’s a spokesman from Eastman Kodak talking to the Wall Street Journal on Monday night.
“Any speculation, however informed, suggesting that Kodak is less than financially sound, is irresponsible,” wrote Eastman Kodak spokesman David Lanzillo in an email. “Kodak is financially solid, and we are taking the right actions to ensure that we remain a strong and enduring competitor.”
It would, of course, be interesting to see a European version.
Related link:
Moody’s-leper-list-in-full - The Long Room
