S&P addresses rating stability — at long last

24 Jul 2008

Standard & Poor’s has proposed that expected rating stability should be a factor when it assigns ratings. Well, duh! What does a high rating signal if not credit stability? This is an obvious measure which should have been done years ago, but S&P nevertheless deserves everyone’s praise for having the insight to cut through the twaddle and make ratings more meaningful.

It "falls as they say love should, like an enormous yes". Philip Larkin’s line may seem out of tone with the dry world of credit ratings, but in the specialised world of the capital markets, criteria changes by the rating agencies often provoke high emotions. Usually anger, of ...

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