Category: Rating Agency


The Trouble With Credit Rating Agencies. And Naspers.

The news that is gripping South Africa’s financial world: Fitch has downgraded Nasper’s senior unsecured bonds down to junk status. Naspers is one of South Africa’s top companies. And what I mean by that is: I am often reminded (by the old school investors) that Naspers has, historically, been the best performing stock on the JSE. […]

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S&P sued. Conspiracy or idiocy?

Link: How has it taken 5 years to get to this point? The US government, after “a fallout in talks”, has notified Standard & Poors that it intends to sue them over their standardly poor (in that they were useless) ratings of CDOs and RMBSs in 2007. Of course, the catch in all of this is that the US is […]

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An Update: On Credit Rating Agencies

On 19 January 2012, I published a post of the credit rating downgrades. In it, I mentioned some of the issues that surround the Ratings Agencies and their independence. The real problem is that the Ratings Agencies are paid by the companies that they are meant to be rating. Far too often, a company’s rating […]

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