1 Comment

    • ON: Tue Jul 22nd 08:53 AM
      Commented on:
      Could the U.S. Lose Its AAA Rating?
      I'm a bit late into this thread, but ...

      Did the article in question canvas the idea that there are spillover effects from the ratings on sovereign debt through to the ratings on corporate debt? {I confess, I didn't read it - anything that is in the WSJ is almost certainly six months late and parsed to within an inch of its life... plus I am a very very very lazy man).

      As I understand it, while the loss of the US' AAA rating would not a fortiori <b>cause</b&g... the downgrading of ALL US-based debt rated AA+ and above, it would be very likely to cause all such corporate debt to be placed on review.

      That said, both S&P and Moody's talk a good game, but frankly they have never been in front of the curve in the 20 years I've been watching their abysmal performance. Tell me one disaster they have seen coming before bond markets themselves... they are famous for downgrading stuff two days after the caca hits the air conditioner. The only people I have known who worked for S&P/Moodys were very nearly innumerate. Nice blokes, but I wouldn't want them to be assessing the creditworthiness of a bake sale.

      Cheerio


      GT
      France
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