20 Aug David Nicklaus: credit rating process still needs reform
Posted at 02:08h
in NRSRO
David Nicklaus, business columnist at the St. Louis Post-Dispatch, quotes Rutledge on what it would mean for structured finance to replace the familiar AAA, AA, BB etc. scale with a numerical scale:
“Creating a numerical score for structured debt is like putting a speed limit on a road, Rutledge says. If you simply know that you can be arrested for driving ‘too fast’ in a school zone, some people will cautiously drive 10 mph, while others will go 50 mph. Posting a 25-mph limit makes the street both safer and more efficient.”