Jules Kroll — the man behind one of the best-known security and industrial espionage investigation firms Kroll — is taking to the ratings business, reports the WSJ.
And if Kroll’s other line of work is anything to go by, it should certainly inject some danger and excitement into the world of credit ratings.
Having acquired boutique rating firm Lace Financial last week, Kroll is now said to be pouring some $5m of his own money into the venture, according to the WSJ.
The market is, of course, already dominated by McGraw Hill-owned Standard & Poor’s, Moody’s and Fitch, prompting some to warn that it will be tough for a small player like Lace to dent the market.
That said, following the well-documented shortfalls of the main agencies following the subprime crisis — there is clearly room for a ratings agency which focuses a bit more on the investigative side of the matter than the analytical.
In which case, we wonder if Lace might feel inclined to jazz up its ratings to better suit its new owner. Something, perhaps, like:
Related links:
Rating agency has reservations about … unrated bonds – FT Alphaville
Credit ratings now optional, firms find – WSJ
The unpredictability of the unsolicited rating - FT Alphaville
Why repealing Rule 436(g) violates the first amendment and other rating agency guff – FT Alphaville