Fitch Ratings has Credibility, Now?
Just last October 2008, Congress was berating Fitch Ratings, which proclaims on its website “Know Your Risk”, for failing to know/understand the risk associated with subprime lending and the mortgage backed securities and credit default swaps built on those high risk loans. Jeez, who would’ve thought that subprime loans, to marginal borrowers, were high risk?
Today, Fitch Ratings is so bold as to proclaim the following.
Fitch Ratings on Friday gave the markets notice that it may issue wholesale ratings downgrades on the U.S. banking sector if credit conditions and the economy continue to worsen.
Did Fitch Ratings regain some modicum of credibility, now, and their pronouncements carry weight with the markets?
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