No Nera for agencies

Moody’s and S&P claim that a recently commissioned study supports their belief that not all agencies’ ratings are equal. Fitch, meanwhile, takes a different line of argument. Saskia Scholtes examines the notches that have driven a wedge between the agencies

The long-awaited publication of a study into structured finance ratings by economics consultancy Nera (National Economic Research Associates) has fallen far short of resolving the dispute it was commissioned to settle – prompting a string of contradictory statements from the rating agencies. Commissioned by Moody’s in late 2001, the study was an effort to respond to criticism, especially from rival agency Fitch Ratings, about the practice of ‘notching’ in the ratings for the underlying assets of