Posts tagged 'Ratings Agencies'

Ratings agency puffery

Not our argument — McGraw-Hill’s.

An interesting tack is taken in its lawyers’ motion to dismiss US charges of civil mortgage fraud against Standard & Poor’s, as filed on Monday… Read more

S&P killer, qu’est-ce que c’est?

Did the world not already know that a CDO analyst at S&P parodied Talking Heads “Burning Down the House” as the residential market teetered in 2007?

Like “it could be structured by cows and we would rate it”, it feels like a meme that would need to be invented if it didn’t already exist. Read more

The US v S&P

Hat-tip to the WSJ Law Blog, the full US government complaint against Standard & Poor’s:

 Read more

Lighting a FIRREA under Standard & Poor’s

Update, 8:40pm UK time — Shares in McGraw-Hill were down 15 per cent at pixel.

Fresh in the inbox… Read more

Solipsist & Poor’s

Thanks to Reuters Jamie McGeever for spotting this rather circular bit of introspective logic from S&P. You see, the ratings agency has discovered that its own sovereign ratings are a good guide to its future sovereign ratings. So, for example, since 1989, they have never lowered a sovereign rating with a positive outlook.

It’s the kind of record you fight to keep. Read more

Decoding that Basel securitisation proposal, one annoying acronym at a time

The financial crisis demonstrated how the treatment of securitisations under the Basel framework was some combination of delinquent and a massive enabler of rating agency (and bank) mis-modelling. No wonder then that it only took until July 2009 to get the duct tape out, i.e. release “enhancements” to Basel II, commonly known as “Basel 2.5”.

Now that the committee has had time to truly, madly, and deeply think it over, it’s time for… drumrolla consultative document on which comment will be sought by March 15, 2013. Oh, it’s on now. Read more

Hey look, even wealthy countries can suffer creditworthiness-threatening financial crises

Moody’s announced on Tuesday that it’s reviewing its sovereign credit ratings methodology, and seeking comment from industry participants.

The review comes probably not a moment too soon — and we are not just talking about the French getting very cranky. Bloomberg reckons Moody’s sovereign ratings are unpopular, even by the low standards of sovereign ratings popularity: Read more

The ESM loses an Aaa

Moody’s has cut the eurozone bailout fund’s credit rating to Aa1, and maintained a negative outlook. It also removed provisional Aaa ratings from debt issued by the EFSF.

In a statement, the ratings agency blamed… France, whose own Aaa rating it cut last week: Read more

Moody’s cuts France’s Aaa rating, may want to check if its next baguette explodes

Moody’s has cut France to Aa1 from Aaa, maintaining the negative outlook originally conferred in February.

Pierre Moscovici, French finance minister, was stoic at pixel time. “Moodys is now giving France the same rating as Standard & Poor’s, which has allowed us to live with low interest rates for many months,” he told Reuters. S&P cut its AAA rating for France back in January. Read more