Thursday 22 February 2018

Beware the credit gods

Credit ratings agencies emerged long since as major players in the fallout from the global financial meltdown. Governments, bondholders, international agencies and top bankers seemed to regard their pronouncements as infallible.

And in a way, they were. If a major ratings agency reduced a country's standing by just one notch, that country's debt burden would rise. If there was a deep cut, especially one to the dreaded "junk status", there would be talk of bailouts and even defaults.

Fears about the immediate future could, and still can, come into the reckoning.

Please sign in or register with for free access to Opinions.

Sign In

Promoted Links

Today's news headlines, directly to your inbox every morning.

Don't Miss