The Credit Rating Agencies

In 1999 two-third of the debt rated triple B by standard and poor was priced within 20 basis points of the average bond with the same rating. | The credit rating agencies use legions of high trained analyst with access to top management. | Lately, the credit-rating agencies have struggled to keep up. | Their meticulous reports giving ratings for corporate bonds are designed to give an accurate picture of the riskiness of the bond and ultimately the probability of default. | It seems a bond rating tells you even less about the price that investors are willing to pay.