Sunday, June 15, 2008
A Franco-Prussian Ratings Agency?
Germany's chancellor, Angela Merkel, called for a European ratings agency to counter, in her words, "a strongly Anglo-Saxon dominated system" of credit ratings, referring to Standard and Poor's and Moody's. (We'll leave aside for the moment that the Anglo-Saxons were in fact German.)
She went on to say that "in the medium term Europe will need a working ratings agency because the robust currency system of the euro has not yet secured sufficient influence over the rules governing financial markets."
Ms. Merkel need look no further for a partner in her new Eurozone ratings agency than neighboring France. As it turns out, French conglomerate Fimalac SA is majority owner of Fitch Ratings, which, according to Fimalac's website, is "la 3ème agence mondiale du secteur [the world's third largest ratings agency]."
If Ms. Merkel's nationalistic fingerwagging is taken at face value, we may soon witness the transformation of Fitch into a Franco-Prussian credit ratings empire, the likes of which the world has never seen.
However, don't expect a triple-A credit rating to be any more credible just because it's written in Blackletter Gothic script. --GAHjr
She went on to say that "in the medium term Europe will need a working ratings agency because the robust currency system of the euro has not yet secured sufficient influence over the rules governing financial markets."
Ms. Merkel need look no further for a partner in her new Eurozone ratings agency than neighboring France. As it turns out, French conglomerate Fimalac SA is majority owner of Fitch Ratings, which, according to Fimalac's website, is "la 3ème agence mondiale du secteur [the world's third largest ratings agency]."
If Ms. Merkel's nationalistic fingerwagging is taken at face value, we may soon witness the transformation of Fitch into a Franco-Prussian credit ratings empire, the likes of which the world has never seen.
However, don't expect a triple-A credit rating to be any more credible just because it's written in Blackletter Gothic script. --GAHjr
