tag:blogger.com,1999:blog-3202774368551476669.post6403131413963160634..comments2023-09-15T16:21:31.980+05:30Comments on INDIAN CORPORATE LAW: Rating the RatersUmakanth Varottilhttp://www.blogger.com/profile/12438677982004444359noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3202774368551476669.post-65000023428602693022008-11-29T03:31:00.000+05:302008-11-29T03:31:00.000+05:30Its interesting to read Michael Lewis/ Thomas Frie...Its interesting to read Michael Lewis/ Thomas Friedman discussing this - <BR/><BR/>"‘We always asked the same question,’ says Eisman. ‘Where are the rating agencies in all of this? And I’d always get the same reaction. It was a smirk.’ He called Standard & Poor’s and asked what would happen to default rates if real estate prices fell. The man at S.& P. couldn’t say; its model for home prices had no ability to accept a negative number. ‘They were just assuming home prices would keep going up,’ Eisman says.”<BR/><BR/>http://www.nytimes.com/2008/11/26/opinion/26friedman.html?_r=1&hpSatyajit Guptahttps://www.blogger.com/profile/17708996826640743145noreply@blogger.comtag:blogger.com,1999:blog-3202774368551476669.post-20781784118848685072008-11-21T11:05:00.000+05:302008-11-21T11:05:00.000+05:30WIth due respect to your views, I must say the rat...WIth due respect to your views, I must say the rating agencies in India are very thorough with their processes. <BR/><BR/>I'd like to turn the argument on its head. The lower and better-known agencies are .. the better it is ... because of less competition at the expense of price and quality ... it could happen that a corporate goes to a new agency that gives them a suitable rating .. In fact a few newer agencies that are coming up, are competing at the cost of price and quality ... and you make a new agency government controlled .. and see how suffocating it gets for the already tight undeveloped credit market in India<BR/><BR/>The current crisis has nothing to do with corporate ratings ... it is with more sophisticated structured finance ... which is not these people's forte in IndiaAnonymousnoreply@blogger.com