Agencies 39rating39 unknown power that destabilize
Agencies 'rating': unknown power that destabilizes economies.
Although it is often centuries-old business, the debt rating agencies (or rating) the ordinary people have begun to be familiar in these times of economic crisis. His image is hardly idyllic: in recent times the emergence of these companies and their reports make them look like a "bag man" who terrorizes the markets.
Analysts expect the other two rating agencies reduce debt espanolaInfundados or not, these fears are not to take them lightly. In the last week, Standard & Poor `s, the largest of these agencies, has revised its rating of sovereign debt in the long run of Greece, whose bonds are now" garbage "to reach the rating BBB +; Portugal, who has spent from A + to A, and Spain, whose rating went from being AA + to AA persepectiva negative.
The case of Spain is the least serious of the three as the agency continues to characterize as "excellent" despite its debt reduction, however the impact on parks stock exchange and trust towards our country and are getting noticed. In fact, while the other two major agencies Fitch and Moody's maintained its rating when Spanish debt, analysts expect them to continue the path of his rival and lower their own qualifications for our country.
In this welter almost arcane arithmetic capital letters and signs are part of mathematical logic and also, why not say, of something dark divination.
Model unknown
Credit rating agencies are companies that, on behalf of a client, qualify a certain financial products or assets whether they are businesses, states or regional governments (as the autonomous communities in Spain). In short, his grades assessed the risk of default and deterioration of the creditworthiness of the issuer. They use econometric models which use different variables and accumulated debt, the return speed, etc. they are used to evaluate the economic potential of the subject analyzed. That is, the information listed, for example, whether an investment in a particular financial product (treasury bills, stocks, etc) is risky, considering the possibility that the investor receives interest and to recoup the money by the expiration the product.
The problem is that nobody knows the model used to calculate
"The problem is that nobody knows the model used to calculate it,Sanchez_de_Leon_stresses_thats," said economics professor Jose Garcia Montalvo, Universitat Pompeu Fabra, "pay for it, but do not tell your variables." "What we do know is that in the past seven years have not changed their models and these had flaws," he says.
This sector operates almost like an oligopoly controlled by three New York-based Standard & Poor's, Moody's and Fitch, which dominate about 90% of the market. Although each has its own grading system, these are very similar.
Many doubts
"The rating agencies did not always right. People believe