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Kasz216 on 22 November 2012
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joeorc said:
Actually.  Yes.   If you knew anything about world policies you'd know that Italy is in fact corrupt... and the rating agencies are not.

These charges are just retaliation for Italy's financial problems and the credit ratings drops on there country.  Which were deserved and looong overdue.  It's a political show for the Italian people.   Just about anyone who pays attention to financial news could tell you this.


Credit Agencies are usually cautious by nature because the last thing you want to do is drop a company's status and it end up fine.

Also... how much Sony has to pay to get a lone... has a lot to dowith cash on hand... espiecally going foward.  Since more interst means less cash on hand.

A breakthrough came three weeks ago when an Australian court ruled that S&P misled 12 councils in Australia by awarded a AAA rating to derivatives products created by ABN Amro which imploded less than two years after they were sold.

"that Italy is in fact corrupt... and the rating agencies are not."

really?


Yes REALLY. It's all revenge starting for this

http://www.france24.com/en/20110920-credit-agency-standard-poors-downgrades-italy-rating-debt-eurozone

Where they claimed "political corruption."

Italy doesn't care why you don't trust Credit rating agencies, they just don't want you to trust credit ratings agencies... because their credit ratings suck.


The Australia ruling was nothing more then a populist feel good ruling, from a country that likes those.  I mean hell.

"Town officials said during the trial they hadn’t read all of the accompanying documents and relied on the AAA rating to make the decision to invest in the notes."

Essentially they sued because they were too stupid to read their paperwork.

http://www.bloomberg.com/news/2012-11-04/s-p-found-liable-by-australian-court-for-misleading-ratings.html

http://www.businessinsider.com/australian-court-ruling-on-sp-2012-11

Chances are, it gets overturned.   Credit ratings aren't some just some guy sitting in a room throwing darts at a dartboard with ratings numbers on it.

 

It's 70-80%  formula.   Higher in the cases of bonds like the Australian case.