Moody’s head resigns
(20 May 2010 – Global) Moody’s is set to lose its head of sovereign risk, after the US Senate last week voted for tighter regulations on credit agencies.
Pierre Cailleteau has held the role as head of sovereign risk since 2004, as well as the role of chief international economist since 2002.
A spokesman for the agency insists that the decision to resign was Mr Cailleteau’s and had nothing to do with criticism the agency has been faced with over the relaxed speed they reviewed the credit ratings of some southern European countries.
As of yesterday Moody’s still rated Greece an A3, its fourth highest rating, despite the sovereign debt crisis that has been the result of emergency meetings of the European Central Bank and International Monetary Fund.
The credit agencies two main competitors, Standard & Poor’s and Fitch, have both downgraded Greece’s government bonds to ‘junk’.
European politicians have accused ratings agencies of worsening the financial crisis in the eurozone, sparking the European Commissioner for the Internal Market, Michal Barnier, to suggest Europe look at creating its own ratings agency.
Moody's said that Mr Cailleteau would be replaced in the meantime by Bart Oosterveld, its chief credit officer for public sector ratings, however Mr Cailleteau has not as yet set an official departure date.
A spokesman for the agency insists that the decision to resign was Mr Cailleteau’s and had nothing to do with criticism the agency has been faced with over the relaxed speed they reviewed the credit ratings of some southern European countries.
As of yesterday Moody’s still rated Greece an A3, its fourth highest rating, despite the sovereign debt crisis that has been the result of emergency meetings of the European Central Bank and International Monetary Fund.
The credit agencies two main competitors, Standard & Poor’s and Fitch, have both downgraded Greece’s government bonds to ‘junk’.
European politicians have accused ratings agencies of worsening the financial crisis in the eurozone, sparking the European Commissioner for the Internal Market, Michal Barnier, to suggest Europe look at creating its own ratings agency.
Moody's said that Mr Cailleteau would be replaced in the meantime by Bart Oosterveld, its chief credit officer for public sector ratings, however Mr Cailleteau has not as yet set an official departure date.
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