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S&P will fight for trade if US adopts new regime
STANDARD & Poor’s suggested yesterday his rating agency would not lose business if the US creates a board to match rating agencies with debt issuers.
President Deven Sharma said: “We will have to go to investors and convince them that, ‘Look, you still want a rating from us.’ We’ll have to work harder to get those mandates from the investors and from the issuers directly.”
US lawmakers are crafting final legislation to revamp financial regulation and will soon decide whether a credit rating agency board needs to be created so a third party can choose which rating agency would rate an issuer’s debt. The Senate proposal is designed to increase competition in the industry dominated by Standard and Poor’s, Moody’s and Fitch.