Rubens Morse

Annals of Pathetic CEO Communication, Moody's Edition

This bashing of Moody's is silly. First of all, they have a pretty strong disclaimer (ratings are provided as statements of opinion and not statemements of fact as to creditworthiness of issuer, are not a recommendation to buy or sell, investors should be their own studies and evaluations of credit decisions, etc etc.) that should protect them from big liabilities, like they did in the past. Rating agencies were sued following the collapse of big companies like Enron and WorldCom, and always won in court. Second, S&P did not make any model or coding error, and came up with the same AAA rating for those CPDO. Moody's stock is extremely undervalued and will come back strongly.