That is my first comment when I see that Europe wants to set up a new ratings agency. And my second one is that has become crucial - to establish a new, European rating agency. That is credible and can actually break the almost monopoly of the big 3 American ones. Now, a few additional thoughts:
- Europe needs this agency to allow for a voice in the ratings world. But the agency needs to be credible. If Greece or Spain debt is actually not trustworthy, the European agency needs to be frontal and direct on that;
- This means that the capital structure of such a company needs to be closely evaluated. Now, I don't think that by taking in soverein capital this is more threatned than by having big banks one - as it happens with the big 3 American rating agencies;
- Last point - the 3 American agencies act like a block, because of close capital ties between their investors. Shouldn't this be looked in from a Competition Law and Equity markets stand point?
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