Great write up. The credit rating really has to be held accountable on the misleading work they have been churning out. They are not doing what they are set out to do. Help all investors. Instead they help companies to unnecessarily stay afloat even if they are not worthy due to their outdated business model.
It is hard to believe that the "Dodd-Frank Act of 2010 Congress directed federal agencies, including the SEC, ‘to remove any reference to or requirement of reliance on credit ratings’ from SEC rules and to substitute an appropriate standard for credit-worthiness." and that "These discussions are now, twelve years later, still ongoing .." whilst something, admittedly as "less wrong" as Altman Z exists to start with and improve over time. Maybe Yahoo can help and one day X.com will have something like this in an app for retail investors to consider prior to investing in a publicly traded company.
I completely agree with what has been stated throughout this article, I really hope this information can be spreaded so more people become aware of the big discrepancies between the work the agencies do and publish and the reality of the inappropriate ratings many companies currently have. I specially like the mention of what ocurred in the financial crisis where these agencies failed to downgrade some firms that were clearly headed to bankruptcy.
I fully agree with Mrs Merz. Many pension plans and thus employees are losing out on their funds returns because of the credit ratings inconsistencies. I rely greatly on Yahoo web site for my own analysis of stocks and the market. The Altman-Z would be a very useful addition.
exactly!
Dear Mama all this rating thing is a business, we know...It is great yo bring it to the people....thanks
Nice letter, google finance works too?
Great write up. The credit rating really has to be held accountable on the misleading work they have been churning out. They are not doing what they are set out to do. Help all investors. Instead they help companies to unnecessarily stay afloat even if they are not worthy due to their outdated business model.
It is hard to believe that the "Dodd-Frank Act of 2010 Congress directed federal agencies, including the SEC, ‘to remove any reference to or requirement of reliance on credit ratings’ from SEC rules and to substitute an appropriate standard for credit-worthiness." and that "These discussions are now, twelve years later, still ongoing .." whilst something, admittedly as "less wrong" as Altman Z exists to start with and improve over time. Maybe Yahoo can help and one day X.com will have something like this in an app for retail investors to consider prior to investing in a publicly traded company.
I completely agree with what has been stated throughout this article, I really hope this information can be spreaded so more people become aware of the big discrepancies between the work the agencies do and publish and the reality of the inappropriate ratings many companies currently have. I specially like the mention of what ocurred in the financial crisis where these agencies failed to downgrade some firms that were clearly headed to bankruptcy.
Très bien écrit...
Merci 💯🌏🌎🌍🌍🚀
Very important work Alexandra
Fantastic Job Alexandra!
Thanks for this detailed analysis!
I fully agree with Mrs Merz. Many pension plans and thus employees are losing out on their funds returns because of the credit ratings inconsistencies. I rely greatly on Yahoo web site for my own analysis of stocks and the market. The Altman-Z would be a very useful addition.