Moody’s: Set Up Govt Ratings Firm

Public sector ratings agency could ‘neutralize’ private ratings, says Moody’s CEO McDaniel.

Governments, which have been criticizing credit-rating companies over sovereign-debt downgrades, should start a competing firm, according to Moody’s Corp. Chief Executive Officer Ray McDaniel.

“Public institutions that have both the expertise and credibility among market participants should provide credit views on sovereigns,” McDaniel wrote today in a paper called “A Solution for the Credit Rating Agency Debate” that was posted on the New York-based company’s website.

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