2023-06-01 21:10:27
Excellent “AAA” ratings from rating agencies. THOMAS COEX/AFP
The agencies retain their functions in the financial ecosystem, but they are much less talked about.
In 2013, in Europe, it was better to be discreet when working for a rating agency, one of those companies responsible for assessing the ability of borrowers, companies and States, to repay their debt on time. Accused of having added fuel to the fire during the financial crisis of 2008 but also that of the sovereign debts of 2012, due to the self-fulfilling nature of their predictions, the agencies were attacked from all sides. The European Commission sought to break the oligopoly of the three American behemoths: Standard & Poor’s, Moody’s and Fitch and new rules made them responsible in the event of incorrect ratings causing damage to an investor.
At the time, despite their justifications, institutions were struggling to recover from the discredit of having assigned excellent “AAA” ratings to risky securitized mortgages. “Agencies have been accused of trying to increase their profits and market share…
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