How creditworthy are the ratings reports of these agencies on sovereign debt of big countries like US or for that matter, India. As is said, it is only their opinion.
And these same worthies gave excellent rating to those residential mortgage securities prior to 2007.
And this is what, "S&P said in its request to dismiss the case that the government can’t base its fraud claims on S&P’s assertions that its ratings were independent, objective and free of conflicts of interest because U.S. courts have found that such vague and generalized statements are the kind of “puffery” that a reasonable investor wouldn’t rely on."
'Puffery as a legal term refers to promotional statements and claims that express subjective rather than objective views, which no "reasonable person" would take literally.' : Wikipedia
And these same worthies gave excellent rating to those residential mortgage securities prior to 2007.
And this is what, "S&P said in its request to dismiss the case that the government can’t base its fraud claims on S&P’s assertions that its ratings were independent, objective and free of conflicts of interest because U.S. courts have found that such vague and generalized statements are the kind of “puffery” that a reasonable investor wouldn’t rely on."
'Puffery as a legal term refers to promotional statements and claims that express subjective rather than objective views, which no "reasonable person" would take literally.' : Wikipedia
