Opinion

George Chen

Banking on a Triple-A rating (Part 2)

George Chen
Aug 8, 2011 05:35 UTC

By George Chen
The opinions expressed are the author’s own.

Who is perhaps the most hated man in Washington as well as on Wall Street these days?

Your guess? Not Muammar Gaddafi, not some Al-Qaeda extremist, not Kim Jong-il, but a man named David Beers. You may never have heard of David Beers but every financial policymaker in the world knows his name.

A Wall Street veteran and a graduate of the London School of Economics where he has endowed a scholarship in his name, he is the global head of sovereign credit ratings for Standard & Poor’s. For a Reuters story in details, click here.

To the surprise of some investors, if not everybody, the United States lost its top-tier credit rating from Standard & Poor’s, just days after rival agency Moody’s decided to extend its Triple-A rating for the United States. The chain reaction from S&P’s downgrade is obvious.

From London to Hong Kong, this is really the only story that investors care about and are talking  about. How will the Hong Kong and Shanghai stock markets open on Monday? How much will the market lose further this week?

Banking on a Triple-A rating

George Chen
Aug 4, 2011 04:00 UTC

By George Chen
The opinions expressed are the author’s own.

You may think I am overly cynical today but let me first ask you a simple-yet-complicated question — what is fair?

Global ratings agency Moody’s said yesterday that the United States will retain its top AAA credit rating after President Barack Obama signed a bill to raise the federal debt ceiling. However, we heard very different opinions from China on the credit rating of the world’s No.1 economy.

A Chinese ratings agency yesterday downgraded the U.S. from A-plus to A, saying the deal to lift the debt ceiling would not solve underlying U.S. debt problems or improve its debt-paying ability over the long term.

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