Michel Barnier, the European Union’s financial services commissioner, said credit ratings companies should have access to the same information. He was speaking at a press briefing in Brussels today. If a ratings agency uses information for one of its clients “the other agencies must have access to the same information,” he said.
Nomura Holdings Inc. regained the top spot in Japan’s bond underwriter rankings as it mobilized a 177-branch network to help Softbank Corp. sell debt to households and the impact of an insider-trading scandal faded.
In the run-up, or slow walk, to the fiscal cliff, credit rating agencies warned that a failure to reach an agreement to avert the automatic, year-end spending cuts and tax increases would put the nation's sovereign credit rating at risk. Standard & Poor's had already downgraded the U.S. long-term debt rating to AA+ from AAA on Aug. 5, 2011, during the debate over the debt-ceiling.
In March 2007, Standard & Poor’s rated $773 million of the Cairn Mezzanine III collateralized debt obligation AAA. The deal crumbled after the rating company began cutting the rankings on bonds contained in the deal three months later.