Governments, which have been criticizing credit-rating companiesover sovereign-debt downgrades, should start a competing firm,according to Moody's Corp. Chief Executive Officer RayMcDaniel.

“Public institutions that have both the expertise andcredibility among market participants should provide credit viewson sovereigns,” McDaniel wrote today in a paper called “A Solutionfor the Credit Rating Agency Debate” that was posted on the NewYork-based company's website.

European lawmakers have blamed Moody's, Standard & Poor'sand Fitch Ratings for complicating efforts to resolve the region'sdebt crisis by cutting countries' ratings, leading the EuropeanUnion to adopt tougher regulations. While some have consideredprohibiting the companies from publishing their opinions, thatwon't stop investors from speculating on creditworthiness, McDanielsaid.