Broken joints
Moody's Investors Service's determination to change its rating approach, and its subsequent decision to revise its controversial joint default analysis methodology, has left the agency's reputation in tatters.
Talk about ratings volatility: on February 22, Icelandic bank Glitnir had a senior debt rating of A1. A day later, it was catapulted six notches to Aaa. Moody's Investors Service has now signalled that Glitnir's rating is likely to end up somewhere between the two by April 10 - although no-one is yet sure where. None of this seesawing is occurring because of changes in the creditworthiness of the bank itself, so what's going on?
The answer is Moodys' new bank ratings approach, which makes
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on People
People: New brooms at NatWest and Tradeweb; MUFG splits rates, and more
Latest job changes across the industry
Bank of America’s Kris Fador elected FS-ISAC board chair
Industry consortium for cyber security also adds new board directors from Swift, PNC, Truist and CME
People: Barclays’ macro trade reshuffle, UBS board moves, and more
Latest job changes across the industry
Asia moves: Senior hires at HKEX, UBS and more
Latest job news from across the industry
People: Citi lures JPM private bank CRO, Körner crowns Credit Suisse exits, and more
Latest job changes across the industry
People: Isda taps four new directors, O’Callaghan joins CA, Berlinski quits Goldman, and more
Latest job changes across the industry
People: Citi snags Raghavan, SocGen bags Estrada, all change at NYCB, and more
Latest job changes across the industry
Kane to leave Citadel Securities for senior Miax role
Options exchange has been on a four-year acquisition spree