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Demand for ratings from companies that want to issue bonds has soared.
The greater the perceived risk, notes a joyful ratings executive in New York, the greater the demand for ratings.
Indeed, much of the demand for ratings comes from investors who want to know whether this or that debt issue is attractively priced.
With the recent revival of the real-estate market, commercial-mortgage securitizations are reviving, and so is the demand for ratings from credit-ratings agencies.
There was even increased demand for ratings of structured bonds the sort sliced into different tranches with varying exposure to default, which featured prominently in the crisis.The fact that issuers still pay for ratings, rather than investors, has also helped maintain demand.
In domino fashion, other companies related to the subprime industry suffered major losses Tuesday, such as ratings agency Moody's, which dipped 6.64%, or $4.22, to $59.35 on fears that subprime defaults will decrease demand for ratings of home loan securities.
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Standard & Poor's, as its parent McGraw-Hill now defines the unit, pulled in $1.7 billion in revenue in 2010, 10 percent more than the year before, as companies flocking to raise debt drove demand for its ratings.
Although the job cuts are spread across the company's business lines, McGraw-Hill tied its problems largely to the turmoil in the subprime mortgage market, which will reduce demand for credit ratings.
"There may be demand for high ratings programming, but... perhaps that programming is not so popular but is actually what we want the BBC to deliver as part of that distinctiveness and the plurality of public service broadcasting".
securities with triple-A ratings, demand for them was red hot.
For example, it says that a woman who was monitoring S&P's ratings for mortgage-backed securities complained to colleagues that executives had prevented her from initiating downgrades because of concerns that it would hit demand for the company's ratings services.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com