Moody’s mucks it up

02 May 2013

It was no surprise that when EuroWeek called Moody’s this week to find out what lay behind the decision to junk Slovenia’s rating while it was in the middle of its dollar deal, and to establish who knew the cut was coming, the response was flustered and uninformative. The only thing that Moody’s really seems to have junked is its own credibility.

It cut Slovenia’s rating from Baa2 to Ba1 on Tuesday just as the leads on the dual tranche dollar bond were amassing $12bn of orders. Understandably, the syndicate and the borrower elected to put the deal on ice. Among other things, Moody’s questioned the country’s ability to raise ...

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