We are hearing in the news daily how S&P, Moody's and Finch ratings agencies are looking at downgrading European countries debt ratings.
"Portugal may have its Aa2 credit rating cut by Moody?s Investors Service as the country struggles to reduce its budget deficit and revive economic growth, the latest sign that contagion from the Greek crisis is spreading. Global stocks plunged last week as S&P cut ratings on Greece, Portugal and Spain." (Bloomberg, Stocks & Euro Slide on Debt Concern)
This sounds very familiar. These are the same agencies which rated Lehman brother's debt as AA before the bank collapsed.
These agencies should be dumped. There is no point reducing a countries rating once the cat is out of the bag. It would be interesting to know if they received any kickbacks for keeping Greece's ratings artificially high over the last 12 months?
