If ratings analysts are confident an acquirer will pay its debts, the argument goes, that confidence should be reflected in the grades. Moody’s analysts often assign ratings that differ from what its hard metrics might indicate, according to Mariarosa Verde, a senior credit officer. Ratings officials say that deals that hurt a company’s credit health don’t always result in downgrades if analysts believe the impact will be temporary. More latitudeMost people agree that credit ratings are part art and part science. The ratings companies, in other words, had underestimated the risks.

Source: Mint October 25, 2016 20:33 UTC