Famous blunders by the credit rating agencies
Published 12/04/2011 | 05:00
Credit ratings agencies had Enron at investment grade status days before the US energy giant went bankrupt. All three ratings agencies gave investment grade ratings to pools of US subprime mortgages that later defaulted. An official US inquiry concluded: "The three credit rating agencies were key enablers of the financial meltdown." Anglo Irish Bank had an A+ credit rating coming into the financial crisis, with Fitch in particular pointing to its long-term ability to generate profits and its "good asset quality''.