Posts

Showing posts with the label S and P

Standard & Poor's cut its credit outlook on the US to negative

On Monday, April 18th, Standard and Poors, a Nationally Recognized Statistical Rating Organization (NRSRO), or credit rating agency, cut its credit outlook for the US to negative. We believe this rating opinion unwarranted and inaccurate. To understand why, one must look at credit rating agencies in general, their competence (specifically, their performance prior to the recent financial crisis), and current AAA rated countries.
Lets take that last item first. Here is the list of countries currently rated AAA by S&P: Australia AustriaCanadaDenmarkFinlandFranceGermanyGuernseyHong KongIsle of ManLiechtensteinNetherlands New ZealandSingaporeSwedenUnited KingdomUnited States of AmericaWe find it difficult to believe that the Isle of Man and Liechtenstein, countries whose main export appears to be laundered money, will be better future credit risks than the United States of America.
Let's next review what a credit rating agency is, what it does and how it makes money. According to one…

This Week's Events and News

Social Investors Launch Campaign to Halt Proposed Changes to Proxy Access RulesAccording to Portfolio.com, "Socially concerned investors groups say they won't stand by and see Securities and Exchange Commission chairman Christopher Cox crimp their right to demand company accountability on important issues like the business risks of climate change. The Social Investment Forum, the Interfaith Center on Corporate Responsibility and Ceres, a coalition of investors, environmental groups and others, unveiled a new web site to attract 500 institutions and financial professionals to sign a joint statement against proposed S.E.C. changes."
As we noted earlier,

"Those most directly impacted by the policy change are large in number but divided and unorganized. These include shareholder groups like the Interfaith Center on Corporate Responsibility, labor-related funds, faith-based pension funds, 'socially responsible' mutual funds, and individual stockholders...these grou…