Rating Agency





Credit Rating Agency - Wikipedia EN: LINK ¤ CREDIT RATING AGENCY

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  • "credit rating agency - CRA - is a company - that assigns credit ratings !"

 

 

 

 

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  • "rating agencies - often say - that their ratings !"

 

 

 

 

 

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  • "are simply - an expression - of the opinions - of the agency !"

 

 

 

 

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  • "and their ratings - are - and must be construed - solely as statements - of opinion !"

 

 

 


 

 

 

 

 

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EU new Controls for Credit Rating Agencies - Reuters: LINK ¤ REUTERS

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  • "the European Union - and the European Parliament - agree !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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  • "to introduce - limited controls - on credit ratings agencies !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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  • "Michel Barnier - the European Commissioner - who helped broker the deal !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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  • "the new law - aims to reduce - the reliance on ratings !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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  • "and establish - a civil liability - regime !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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  • "under the law - the agencies - set up a calendar - indicating !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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  • "when they will rate - countries - publishing ratings only !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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  • "after close - of financebusiness - and at least one hour before !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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  • "the opening of trading - in the EU - the Green member - of the EU Parliament !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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  • "Sven Giegold - says "some parts - had been softened - during negotiations"  !"

 

 

 

 

 

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  • "but it is a step - towards better supervision !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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  • "some economists - demand an independent - rating agency !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 


 

 

 

 

 

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EU on Credit Rating Agencies - US cable - 2008: LINK ¤ 08BRUSSELS1744

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  • "credit rating agencies - are required - to register !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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  • "in a central - European database - the database gathers - historical !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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  • "rating information - allowing users - to compare rating performance !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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  • "but supervisors - will not approve ratings - only ensure compliance - with the rules !"

 

 

 

 

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  • "the European Commission - says "there can be - no self-regulation"  !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 


 


 

 

 

 

 

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- Oversight and Reform Committee - for Rating Agencies -

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Regulation - GPO: LINK ¤ OVERSIGHT COMMITTEE

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  • "the former - Moody’s managing director - Jerome S. Fons - stated !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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  • "he saw no easy fixes - to the problems - facing the rating agencies !"

 

 

 

 

 

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  • "first - they need to see - wholesale change - at the governance !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

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  • "and senior management levels - of larger rating agencies !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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  • "all managers - associated with faulty - structured finance ratings - must depart !"

 

 

 

 

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  • "the new leadership - preferably from a - solid public service - background !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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  • "must acknowledge - the mistakes of the past ! - ( defensive posture of denial - litigation fears ! )"

 

 

 

 

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  • "second - bond ratings - must serve - the potential buyer - of a bond !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 

 

 

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  • "structured finance rating practices - must emphasize transparency - and simplicity !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 


 

 

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  • "statistical - backward-looking methods - needs to be replaced - by common sense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

 

 

 




 

 

 

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Moody’s Management Team - GPO: LINK ¤ OVERSIGHT COMMITTEE

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  • "a member of the Moody’s - management team - said in the oversight !"

 

 

 

 

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  • "and reform committee - for rating agencies - the day before !"

 

 

 

 

 

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  • "there were heard - two answers - first - people lied !"

 

 

 

 

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  • "and second - there was an unprecedented sequence - of events - in the mortgage markets !"

 

 

 

 

 

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  • "as for the first one - it seemed to him - that they had blinders on !"

 

 

 

 

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  • "and they never questioned - the information - they were given !"

 

 

 

 

 

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  • "as for the second one - it was their job - to think of the worst case !"

 

 

 

 

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  • "scenarios - and model them - combined - these errors !"

 

 

 

 

 

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  • "made them look either - incompetent - at credit analysis !"

 

 

 

 

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  • "or like they sold - their soul ! - ( money ! )"

 

 

 

 

 

 

 

 

 

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Hearing on Credit Rating Agencies - GPO: LINK ¤ OVERSIGHT COMMITTEE

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  • "the documents - from Standard and Poor’s - described a similar picture !"

 

 

 

 

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  • "a S&P employee - in the structured finance division - wrote !"

 

 

 

 

 

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  • "that could be structured - by cows - and they would - rate it !"

 

 

 

 

 

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  • "Mr. Raiter - managing director for securities - Standard & Poor's !"

 

 

 

 

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  • "had been asked - to rate - an early collateralized - debt obligation !"

 

 

 

 

 

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  • "called - "Pinstripe" - he asked for the - "collateral tapes"  !!"

 

 

 

 

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  • "so he could assess - the creditworthiness - of the loans - backing the CDO !"

 

 

 

 

 

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  • "this was the response - he got - from Richard Gugliada - the managing director !"

 

 

 

 

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  • "of S&P - any request - for loan level tapes - from him !"

 

 

 

 

 

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  • "was - totally unreasonable - most investors !"

 

 

 

 

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  • "did not have it - and could not provide it !"

 

 

 

 

 

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  • "nevertheless - he must produce - a credit estimate !"

 

 

 

 

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  • "it was his responsibility - to devise some method - for doing so !"

 

 

 

 

 

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  • "Mr. Raiter - was stunned - he was being directed !"

 

 

 

 

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  • "to rate - "Pinstripe" - without access - to essential credit data !"

 

 

 

 

 

 

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  • "some investors like - PIMCO - tried to warn - Moody’s !"

 

 

 

 

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  • "about the - mistakes - it was making !"

 

 

 

 

 

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  • "but according to the - documents - they eventually - "gave up"  !"

 

 

 

 

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  • "because the Moody’s analysts - behaved arrogant !"

 

 

 

 

 

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  • "and gave the indication - "they were smarter - than he"  !"

 

 

 

 

 

 

 

 







 


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Standard & Poor's - Wikipedia EN: LINK ¤ STANDARD & POOR'S

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  • "Standard & Poor's - Financial Services LLC - S&P - credit ratings !"

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Moody's - Wikipedia EN: LINK ¤ MOODY'S

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  • "Moody's Investors Service - Moody's - credit ratings !"

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Fitch Ratings - Wikipedia EN: LINK ¤ FITCH RATINGS

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  • "Fitch - Fitch Ratings Inc. - credit ratings !"

 

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