Tuesday, 5 February 2008

Moody's wants to change the debt rating system

Moody's has got a great idea, apparently. It wants to rate complex debt securities with numbers rather than letters. Under this new system there would be grades from one to 21. Does it matter? Isn't any system confusing? Sometimes I feel so tired.

I must be a masochist because I phoned Keith Busby this morning and asked him for his opinion. He said, 'Forget about letters. Forget about numbers, my friend. What we need are mystical symbols. Symbols would separate the wheat from the chaff. A picture of the sun could be the top rating. Think of the sun and its beautiful rays of sunshine! Think of the warm glow inside you! As for corporate or government bonds, well, I don't know. How about a picture of a smiling hermit? A happy, smiling hermit! Just imagine that. There are endless possibilities. All it takes is a bit of imagination.'