In hearings in the US on the financial crisis, former staff at Moody's confessed they felt bullied by bankers into granting high ratings, and that the push to win business led to some poor decisions.
As grant ratings are a central feature of the Fund's performance-based financing, it is important that PRs are convinced that they reflect performance.
Indeed, Patel said in a research note that one obstacle is that credit rating agencies are likely to be much more reluctant to grant AAA ratings on what's known as "floor-plan" securitizations (the loans dealers use to buy inventory for their showrooms) because of the risk of an automaker collapse.
Among its recommendations, the committee said the board should be allowed to grant audience ratings only and not determine content except in rare circumstances.
Discerning eaters love to mock Yelp users for griping about the wine selection at burger joints and granting one-star ratings to restaurants which failed to honor their expired coupons.
It received 5 mics, "the holy grail of Hip-Hop ratings, granting it admission into an elite club of timeless musical compositions that span over 20 years... Bun B is the first artist to receive this honor in over 5 years".
Moreover, it is important to note that we granted interviewers the comfort of not having to give ratings.
But alas, the controversy last week stems from the Motion Picture Association of America granting an R-rating to the anti-bullying documentary Bully for a few f-words, while giving money-making juggernaut and violent movie The Hunger Games a PG-13 rating.
Credit rating agencies grant more favorable ratings to derivatives that are sold from within taxpayer-insured banks, making such derivatives more profitable.
To tackle moral hazard, it wants to stop companies with poor credit ratings from granting benefit hikes, or from doling out unfunded pension benefits to unions who agree to plant shutdowns.
The three leading agencies have an oligopoly, thanks to the Securities & Exchange Commission's granting them the grandiose title of Nationally Recognized Statistical Ratings Organization, obviously a huge marketing tool.
