Questions over ratings

S&P's Tony Angel says credit ratings fared well during severe conditions and succeeded as benchmarks against default risk

The financial crisis and economic recession have been the most severe stress test for credit ratings for decades. Contrary to popular belief, they have generally stood up well in the tough conditions and fulfilled their role as benchmarks of default risk. Much has been said and written about the value of credit ratings over the last two years, not all of it complimentary, but the test of their effectiveness is their overall track record in identifying relative credit risk. This is measured entirely empirically by studies that show the correlation over time between different rating levels...