Amplifying a Bold New Voice in Credit
August 30, 2011, 2:00pm posted by
The decision by ratings agency Standard & Poor’s (S&P) to downgrade the United States’ sovereign debt from AAA to AA+ elicited an avalanche of commentary from the industry, the media, the government and the public.
The main dialogue focused on whether or not S&P made an appropriate decision (not to mention the issue of that $2 trillion calculation error). But the controversial move also reignited ongoing debates over the state of the credits rating industry – specifically the role and position of the “big three” (S&P, Moody’s and Fitch) – in the wake of the financial crisis where the ratings agencies gave AAA status to mortgage-backed assets that quickly turned toxic.
This offered up a powerful opportunity for a new market entrant to voice its perspective on the significant and systemic problems with the credit ratings “status quo,” and the changes needed to re-establish credibility.