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More on McGraw-Hill (MHP -7.7%): The planned spinoff of S&P could be in jeopardy after...

More on McGraw-Hill (MHP -7.7%): The planned spinoff of S&P could be in jeopardy after investors punish its parent company, apparently in partial retaliation for the downgrade of U.S. debt. Rival Moody's MCO down 7.5% in sympathy.
Comments (7)
  • tiger8896
    , contributor
    Comments (614) | Send Message
     
    Moody's and Fitch maintained their AAA rating, why not S&P? This has the potential to do serious damage to not only the US economy but the world economies. Why should a ratings agency have the power of god to make us rollover into a global recession.

     

    This from the firm that knew structured products of banks were garbage yet rated them AAA because of sales pressure from the banks. Why couldn't they defer the decision after the treasury alerted them to the 2 trillion mistake in their calculations.

     

    Mcgraw Hill owns S&P, I would boycott any product they sell if you are a corporate customer, if you are a consumer boycott their publications, subscriptions etc.
    8 Aug 2011, 10:46 AM Reply Like
  • zubikov
    , contributor
    Comments (99) | Send Message
     
    It's not the S&P's independence and objectivity that damages the world economy, it's the investment community's failure to acknowledge serious, long-term US fiscal issues. This is a reality check, US can't borrow anymore like it used to. US can't grow itself out of the mess like it did before. The government is useless, if not harmful to restoring order and create a safe investment climate for others.

     

    How can you possibly blame S&P for the downgrade? They're doing their job while others keep lying to themselves.
    8 Aug 2011, 11:06 AM Reply Like
  • tiger8896
    , contributor
    Comments (614) | Send Message
     
    Moody's just reaffirmed the US AAA rating. Did you read the S&P US downgrade report, hardly objective. Spent a lot of time talking about the political climate in the US rather than sticking to financial metrics, the political climate could turn dramatically in 2012 so why make that a factor or just wait until the results of the 2012 election before making such a monumental decision.

     

    So we have a split rating, Moody's and probably Fitch to follow saying we have a AAA rating and our position as the reserve currency of the world and it's largest economy warrants the AAA. Before undertaking a decision to downgrade the largest world economy that is the engine of the world economy they should have exercised some restraint. Instead they made a grandstand play for probably self motivated reasons.
    8 Aug 2011, 11:30 AM Reply Like
  • zubikov
    , contributor
    Comments (99) | Send Message
     
    I respectfully disagree. While S&P did admittedly fumble the numbers, they weren't off by much. The US politics have become such a heavy burden on our economy and ability to service our debt, that the qualitative measures are just as important as the quantitative ones. Also, I doubt that S&P would stick its neck out like this for ulterior motives. They could potentially lose lots of business from the backlash, so they must have been pretty damn sure of their decision.
    8 Aug 2011, 12:04 PM Reply Like
  • tiger8896
    , contributor
    Comments (614) | Send Message
     
    The backlash is being reported, I hope it dashes their chances of spinning off S&P and they lose a ton of corporate and consumer business. Bunch of jerks at S&P, I heard a fund manager say the same thing as me that usually reports justifying downgrades usually are limited to financial metrics and don't go off into left field discussing politics.
    8 Aug 2011, 12:14 PM Reply Like
  • zhellc
    , contributor
    Comments (58) | Send Message
     
    let's S&P and its parent co. go BK. S&P ruin the world economy.
    8 Aug 2011, 10:49 AM Reply Like
  • vtorch
    , contributor
    Comments (288) | Send Message
     
    McGraw Hill sent an email to their customers telling them to dial into a S&P rationale call for the downgrade. My reply was that I wasn't really interested what those idiots in S&P think.
    8 Aug 2011, 10:51 AM Reply Like
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