Posts tagged 'S&P'

Rating P2P

The ratings agencies are wondering how to apply their business models to the growing world of P2P loans.

From Standard & Poor’s this week:

Standard & Poor’s believes the novelty of this sector and its wide range of players presents unique challenges in assessing the overall risks in future P2P loan securitizations. We monitor developments in this nascent sector from a cross-sector vantage point and draw upon our experience in rating various types of consumer, commercial, and structured debt.

P2P lending is evolving, and it’s still too early to know what the industry will look like in its more mature state. As with any young and untested market, we believe there are issues that need to be addressed before we can assign ratings. Some of these issues are P2P companies’ lack of performance histories through full economic cycles, uncertainty about their long-term commitment to the business, and their financial stability, operational risks, servicing quality, and loan credit performance in a downturn. We also consider the unproven ability and capacity to comply with new and ongoing regulatory and legislative requirements.

 Read more

USAA+, stable

Clearly, the planet — on tenterhooks since S&P cut the world’s biggest AAA-rated credit two years ago — can breathe easily once more.

This is the key bit of why Standard & Poor’s put its rating for the United States of America on a stable outlook again (they also don’t see a repeat of the debt ceiling threatening debt service this year): 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

You’re in selective default (again), S&P tells Greece [updated]

No explanation had been given by S&P at pixel time. [Update: it's pasted below the jump.] But the situation is pretty clear: Greece’s “voluntary” buyback of the PSI bonds is being carried out in distressed conditions (ie it will otherwise lose eurozone financial support). Read more

The S&P downgrade ratio in Europe – 4:1

More euro gloom.

From S&P ‘s Global Fixed Income research team on Tuesday, “Europe’s Sovereign Crisis Continues To Erode Credit Quality.” Read more