Category: Credit Rating Agencies

News from the echo chamber

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Columnist Vaughn Palmer reports concerns expressed by Moody’s Investors Service about growing BC Hydro debt. The agency stated the obvious, which is that numerous capital projects are adding billions to the public utility’s debt and higher electricity rates or contributions from government are necessary.

Palmer repeats Moody’s judgement that Hydro’s financial metrics “are among the weakest of Canadian provincial utilities.” However, the Vancouver Sun pundit provides an inaccurate explanation of why the situation exists…

Getting what you pay for

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Isn’t it true that almost none of the fraud that’s swallowed Wall Street in the past decade could have taken place without companies like Moody’s and Standard & Poor’s rubber-stamping it? Aren’t they guilty, too? Man, are they ever. And a lot more than even the least generous of us suspected.