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"We will compare our rating to the external ratings but we try to make our decision independent of what the major rating agencies are saying and that has certainly accelerated," Andrew Bosomworth, head of portfolio management in Germany at Pimco, told Reuters.
Even more peculiar, a loan to an A-rated company would require the same capital as lending to a high-risk firm rated as "junk".Faced with such hostility to the use of external ratings, regulators are now concentrating on allowing banks to use their second option banks' internal ratings—instead.
Wolfgang Nowak, who oversaw Saxony's reforms, blames change-resistant teaching unions and scant external ratings of schools.
Many regulators think that allowing external ratings to be used would give American banks an unfair advantage.
Reliance on external ratings has been reduced in Japan and Argentina, too.Counter-intuitively, some industry leaders back these moves.
External ratings will be wanted in parts where the big agencies do not reach.In its own submission, S&P says that the Basel Committee should caution against using rating agencies in a way that could influence their rating methods.
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The European proposals unveiled this week would amend existing rules "in order to reduce investors' over-reliance on external credit ratings … and increase transparency and competition in the sector," the policy-setting European Council said.
He blasted the way "the global financial system relies heavily on the external credit ratings for investment decisions and risk management".
The Cobb angle values greatly affected the results achieved by Ruggeri et al. For higher values, higher external compatibility ratings were observed, especially in the case of trunk rotation evaluated from left side view [ 20].
Indeed, Jaeschke et al. (1989) concluded that in the absence of a gold standard measure external global ratings represent a credible alternative for establishing the meaning of change in a new measure [ 37].
"Korea's strong fiscal fundamentals enable a relatively large degree of policy space to cope with contingent domestic risks and external shocks," the ratings agency said Monday in a statement.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com