Standard and Poor’s and Moody’s to be Downgraded

Next stop - Down and Out

— International

– Quark Khent, Political correspondent

After a series of mistakes and poor management, Standard and Poor’s and Moody’s rating agencies have had their reputation downgraded as of 11:00 this morning.

There has been slowly growing controversy and outrage circling around the world’s two biggest rating agencies. Critics have stood by amazed as both companies have proved their lack of accountability and reliability while playing Steve Jobs (God) with the world economy. Evidence suggests that they have changed ratings with beliefs formed from political bias and poorly-formed economic analysis instead of rational and evidence-based decision-making. One financial commentator went so far as to say that the top economists at the two ratings agencies would be hard pressed to pass the contemporary A-Level Economics paper.

S&P’s and Moody’s are in the process of contesting the decision, claiming that “No-one watches the watchmen”, however Rupert Murdoch’s decision is final.

What does a downgrade mean for S&P’s and Moody’s?

Unfortunately with a rating reduction from “Elite and trustworthy” to “Immoral scumbags” both S&P’s and Moody’s will no longer be taken as gospel by investors or the financial community in general. This means that the companies will be left to analyse the integrity of less important instruments such as uncle Mac’s old Lexus or aunt Mae’s computer. Meanwhile, former competitor Fitch’s will become the biggest player on the ratings scene. However, China has started to complain that since the top rating’s companies of worldwide investment instruments have been American, they are easily affected by the domestic political and economic situation. The Chinese government have instead proposed an international ratings agency, potentially called the Cooperative Hedge INvestment Agency. This is yet to be rejected by business and finance leaders worldwide.