http://www.bloomberg.com/apps/news?pid=20601110&sid=aiyfkkqoy.A8#
A very interesting development in the US, the home of the rating agencies. It is high time that the rating agencies are stripped of their 'veil' of 'independent opinion' and held culpable for their views. This development need to be watched.
It is very sad that when rating agencies are under a cloud, CRISIL wants to go and rate 'equities' of mid cap companies. Mid cap companies are a mine field, where the promoters are yet to line their pockets and personal goals have a big priority over anything in the company. I think that if anybody invests on the basis of a rating, the agency is surely guilty. The agencies market themselves stating that they do all their homework. So, an investor has every reason to base an investment decision on ratings. The courts need to recognise this and hold the agencies accountable. Though I do come from a rating agency background, what I am seeing today in credit rating agencies is shocking.
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