View the article online at http://citywire.co.uk/wealth-manager/article/a661137
UK's AAA downgrade: why the ratings agencies are best ignored
by Sarah Miloudi on Feb 25, 2013 at 07:55
'There is a lesson here. Sometimes the ratings agencies are best ignored. They played a pernicious role in the run up to the financial crisis, assigning AAA ratings to flawed debt instruments linked to overheated housing markets. The damage to bank capital ratios when these investments turned sour is what created the credit crunch,' Greetham added.
He continued: 'Now, with economies facing sustained consumer deleveraging pressure as a result, the same ratings agencies have advised governments to add to the pain by implementing aggressive austerity plans when their economies need as much support as the markets will let them give.'
News sponsored by:
Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.
Today's top headlines
More about this:
Look up the fund managers
More from us
On the road
by Himanshu Singh on Apr 19, 2014 at 05:21