Look, the same day Brussels was placing France on close watching, showing great clemency towards the non reformer’s nation, S&P’s came out with a satisfactory rating for France which is no longer under negative outlook in S&P’s rating scale. Meanwhile, Moody cut the UK’s triple A, in total contradiction with the latest developments in the EU where all the partners agreed with Cameron’s approach over debt and deficit reduction and the returning of competitiveness in the EU. Even Germany Chancelor, Angela Merkel, took side for Cameron’s theory leaving France isolated in the EU’s last budgetarian summit.
Someone has got it wrong here.
Who is it ? Brussels considering France as a lazy pupil to watch after closely or S&P’s pulling France out of the negative watch according to its own criteria ?
Who has got it wrong ?
Brussels in phase with the UK’s guidelines or Moody’s rating UK’s economy negatively ?
Looks like either S&P’s or Moody’s rating are guided by anger or a desire of retaliation, as US governement is pursuing S&P’s – and people questioned why not Moody’s either ? – S&P’s is accused of being behind the 2008 financial crisis ignition with its fake ratings of bad assets and bonds in the housing markets. The agency considered them safe and secured. The end of the story is one full of insecurities.
At the time, the two agencies were acting like a pair. They should then be fined all the same for sharing responsibilities in this housing bubble bursting. Ahead of that, they are going to make it harder and harder for some countries with high moral standards that expressed some indignation or agreed with America lawsuit against them. To disturb the game, the undeserving will be granted a complacency rating.
Let’s say Brussels was as lenient as S&P’s to France, but not for the same reasons and not even in the same direction. If this is what rating agencies and institutional overseing are going to look like, then stop the whole thing for lack of credibility, good guidance and regulation. Looks like very easy to twist the game. Even in France, people was awaiting a fine for the non compliant French state, from Brussels, at least.