rollover Posted November 12, 2013 Share Posted November 12, 2013 Credit ratings organisations from five countries are launching a new global agency, touting it as an alternative to the Big Three agencies which they say no longer meet the needs of the new globalised world. In a statement on Tuesday, ARC Ratings said the agency would launch in London as a joint venture between CPR of Portugal, CARE Rating of India, GCR of South Africa, MARC of Malaysia, and Brazil's SR Rating. Link Will it make any difference? Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted November 12, 2013 Share Posted November 12, 2013 Interesting combination. It looks like Portugal are joining BRICS - good on them, first one out of the Euro? Quote Link to comment Share on other sites More sharing options...
terryturbojr Posted November 12, 2013 Share Posted November 12, 2013 Will it make any difference? Unless they remove the conflict of interest (in that the people paying them are the people getting the rating) then I doubt it will make a lot of difference. A lot of the market (fast money especially) will take little notice of ratings anyway, considering the credit spread a far better indicator or credit worthiness. Not that they don't wield a lot of power though, as most real money/long only/index stuff will have some kind of rating related limits on what they can invest in (ie investment grade funds can't invest in sub-investment grade bonds, based upon rating). I guess the usefulness of a new agency would also depend upon whether mandates were changed to take notice of a new agency's ratings, I'd've thought most will specify rating is from S&P, Moody's or Fitch (only a few years back a lot of places didn't even count Fitch). Quote Link to comment Share on other sites More sharing options...
MrPin Posted November 12, 2013 Share Posted November 12, 2013 You could always ask people here! We are full of "wisdom", we are! Quote Link to comment Share on other sites More sharing options...
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