Libya Downgraded? The Rating Agencies Are A Joke

I am simply in a state of shock. The financial community must insist that the ratings agencies reform themselves. It took a day of genocide for the following action.

What do you think has to happen for a BBB-minus? There is mass genocide in the streets. This day has been brewing for months. The rating agencies are a joke. They missed the sub-prime mess, missed Europe, they are missing our own domestic municipalities’ problems, and they have zero understanding of how the events in the Middle East will affect the credibility of every emerging market capital structure.

What value do the rating agencies serve?”NEW YORK (MarketWatch) — Fitch Ratings on Monday downgraded Libya’s credit rating, saying the move “reflects the eruption of political risk evidenced by the increasing momentum of the popular uprising aimed at ending Muammar Gadhafi’s 42-year rule.” The rating agency downgraded the oil-rich North African nation to BBB from BBB-plus and warned a further downgrade could come without political resolution to the crisis that has reportedly left hundreds dead. Libya is the sole Fitch-rated sovereign that has no government debt, the agency noted in a statement.”

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