Many are familiar with the big three credit rating agencies – Standards & Poor’s, Moody’s and Fitch – however for those who follow the global finance markets Weiss Rating Agency has developed a reputation for issuing accurate ratings. How credit rating agencies contributed to the global financial debacle is well documented – see Dr. Justin Robinson’s BU presentation. In comparison it is interesting to observe the track record which Weiss has developed.
Today (16 July 2011) Weiss made the financial news when it downgraded United States Debt to C-Minus, a bold move when the politics of global financial markets is considered. Regrettably this is not news to be found in the local media. The downgrade by Weiss given its spiffy track record; they have had twice the number of US Banks under watch than the Feds. While several banks have gone under that were not* on the Feds Watch List, not one has gone belly up that Weiss had neglected to signal caution, bear in mind our dollar is pegged to the US dollar. What should add to the concern for Barbados is the protracted debate by the US legislature concerning budget cuts and raising the debt ceiling.
Here is what Weiss had to say in its press release earlier today, the government of Barbados and Governor of the Central Bank particularly should take careful note: