Fitch

For Ratings Firms Holding AAA Sacrosanct is Foolish

 

This article looks at why the ratings firms should act now to repair their reputations by doing broad based downgrades. It also examines the effect this would have on GSEs and the capital adequacy ratios of many financial firms. It points out the disconnect between the rating's firms own loss projections and the ratings they have on AAA tranches.