Barometers of Voodoo Economics - A lowdown on Credit Ranging Agencies

A key part of the Con Dem austerity mantra has been the importance of preserving the UK's AAA credit rating at a time when some eurozone countries are running the gauntlet of the credit rating agencies. The Council on Foreign relations (CFR) think tank gives a lowdown on the "Big Three" global credit rating agencies – US based Standard and Poor's, Moody's, and Fitch Ratings - who have been under intense scrutiny since the 2007-2009 global financial crisis.  http://www.cfr.org/united-states/credit-rating-controversy/p22328

CFR reports that ‘they were initially criticized for their favorable pre-crisis ratings of insolvent financial institutions like Lehman Brothers, as well as risky mortgage-related securities that contributed to the collapse of the U.S. housing market. But since 2010, the agencies have focused on U.S. and European sovereign debt. That resulted in S&P's unprecedented downgrade (Reuters) of the United States' long-held Triple-A rating in early August, initially prompting a global sell-off and market volatility not seen since December 2008. Since the spring of 2010, Greece, Portugal, and Ireland have all been downgraded to "junk" status. In so doing, EU politicians contend, the rating agencies have compounded a burgeoning eurozone debt crisis.’