MOODY’S, FITCH and STANDARD & POOR’S

Rating Agencies in a Financial Crisis Approach

Introduction According to the thought of Himan Minsky, an American economist belonging to the Keinian doctrine, who died in 1996, in periods of expansion, when the cash flow of the enterprises exceeds the quota necessary to pay the debts, a speculative euphoria develops. At the origin of the crises there is a displacement, that is,

Rating Assignment Procedures

The Mechanism Behind Rating Assignment

Introduction The process of assigning the Rating takes place according to a time schedule with phases apparently identical for all the Agencies. The substantial differences mainly concern the mere formal expression of judgment. The process of Rating can start via different procedures: Stimulus by an entity requesting the assignment of a credit Rating for its