Outlook

How credit agencies like Standard & Poor’s work

by Mick Weinstein|Published August 15, 2011

Standard & Poor’s August 5 downgrade of U.S. debt from AAA to AA+ precipitated one of the most volatile weeks in recent market history. Marketwatch’s Paddy Hirsch returns to his whiteboard to explain how credit rating agencies like S&P and Moody’s work, with this clever comparison:

How credit agencies work from Marketplace on Vimeo.

Source: “How credit agencies work” Marketplace Whiteboard, 8/9/11 https://vimeo.com/27460033#embed

AUTHOR

Mick Weinstein

Mick is the Head of Editorial for Covestor, a financial journalist and online content specialist. Prior to joining Covestor, Mick was for five years the Editor in Chief and VP Content at stock market analysis website Seeking Alpha, where he built the editorial function as the site attracted over 3.5 million unique monthly visitors and developed an innovative platform for intelligent stock market discussion. Mick is a graduate of the University of Michigan, Ann Arbor.

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