Coke: “Pepsi Sells Sugary Fizzy Water” - S&P and Moody's

...S&P today placed Moody's (MCO) A-1 short-term debt rating on CreditWatch negative, citing reports that a computer error may have caused Moody's to give AAA ratings to debt that didn't deserve them...

...“They're starting to feed on each other,” said Janet Tavakoli, president of Chicago-based Tavakoli Structured Finance Inc, which advises banks and hedge funds...

Funnily enough, S&P awarded the same CPDO deals the same AAA ratting that Moody’s conceded, after some jostling by The Financial Times, were the result of a programming error. S&P has said that its models were correctly programmed, but still managed to assign AAA ratings to products that promised Libor + 200bps.

Moody’s Commercial Paper Rating May Be Cut, S&P Says
by Alan Goldstein and Mark Pittman
Bloomberg May 22 2008

Comments

[budlab]

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