Meredith Whitney is in the process of setting up a credit-rating agency to compete directly with Moody’s and Standard & Poor’s, the FT reports.
The 40-year-old analyst, who rose to fame with her bearish outlook on banks – particularly Citigroup – in the lead up to the financial crisis crisis, is obviously trying to strike while the iron’s hot and her predictions continue to pan out.
Whitney already creates ratings for the municipal finance market, so the move is a natural one.
She plans to add global structured products, corporate bonds and US municipal bonds ratings to that portfolio.
From the FT,
Ms Whitney said… that her new agency would use the same business model as established agencies, in which issuers of debt pay for ratings. She maintained that she would be able to manage potential conflicts of interest, saying: “If you run a good business and you have compliance in place, there should not be problems.”