Ratings agencies
Forecasting ability fails to justify rating agencies’ power grab
Rating agencies forecasts “not particularly outstanding” during decades following the Great Depression, Bank for International Settlements paper finds
S&P lifts China rating one notch
Ratings agency Standard & Poor’s upgrades Chinese long-term rating; move follows similar step by Moody’s in November, places Chinese debt three marks short of prime rating
Fitch kicks three more notches off Ireland
Irish sovereign debt downgraded to BBB+ by ratings agency Fitch
Central banks, markets must cut ratings reliance: FSB
Financial Stability Board publishes principles to roll back the influence of credit ratings agencies
Anglo bailout prompts Ireland downgrade
Fitch knocks Irish debt one notch; says higher bailout cost will impair fiscal consolidation plans
No easy alternatives to credit ratings
US regulators are right to look to curb their reliance on credit ratings. However, it will prove tricky to find viable alternatives
EU bailout vehicle nets top credit rating
European Financial Stability Facility secures triple A rating
Standard & Poor’s downgrades Ireland
Standard & Poor’s downgrades Ireland’s sovereign credit rating on fears over fiscal burden imposed by banking sector rescue
Washington begins writing out reliance on ratings agencies
Federal Reserve, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and Office of Thrift Supervision begin search for new measure of creditworthiness
ECB closes in on inferior collateral with new haircut scheme
European Central Bank’s new discount schedule increases haircuts levied on troublesome collateral, such as asset-backed securities; analysts expect move to discourage pledging of risky assets
Dodd-Frank starts to bite as Obama signs bill into law
US President Barack Obama draws a line under year-long legislative process, hailing bill’s benefits to consumers; ratings agencies flustered by exposure to ‘expert liability’
Chinese ratings agency yanks triple-A ratings from US, UK
China’s Dagong Global saddles developed world safe havens with lower ratings on grounds of inability to repay debt; gives China three notch upgrade to AA+
IMF resumes financial aid to Ukraine
Fund approves new application for loans after funding was cut off in dispute over its burgeoning fiscal deficit
Old Lady: banks must reduce reliance on rating agencies
Bank of England calls for capital incentives for firms that rely less on external ratings; urges Basel Committee to go slow on introducing Basel III
Markets unfazed by Moody’s Greek walloping
Bulk of European bourses gain despite rating agency’s four notch downgrade of Greek sovereign debt; analysts link calm to tardiness of downgrade and renewed risk appetite
Europe raring to go on CDS rules, bank taxes
Brussels praises the political dynamic behind move for tightened financial regulation as French president Nicolas Sarkozy and German chancellor Angela Merkel call on Commission to speed up work
Brussels calls for European ratings supervisor
European Commission proposes new body to oversee all credit ratings agencies operating in the European Union; security issuers must provide information to all agencies to boost competition
Barroso moots European ratings agency
European Commission president's calls echo those of Michel Barnier; says proposals will be released in September
Ratings agencies blindly mimic market jitters: Noyer
Banque de France governor becomes latest euro-area official to slam credit rating agencies for worsening debt crisis; remarks follow Spain’s second downgrade in two months
Malta's Bonello: Basel II amendments ambitious and far-reaching
Central Bank of Malta governor discusses new proposals to amend the Basel II requirements following lessons from financial crisis
Agency didn't follow its models on CDO ratings
A leading rating agency gave triple A ratings to CDO tranches when their own models implied downgrades
IMF: fiscal prudence pays in emerging markets
IMF study shows that an improving fiscal position improves sovereign debt grading and reduces financing costs in emerging-market economies.
Sovereign troubles will drag banks down: Moody's
Ratings agency says sovereign downgrades in the southern eurozone could lead to decline in banking sector, further spending cuts will exacerbate problem