How credit agencies like Standard & Poor’s work

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