Deutsche Welle, 20 November 2012
An
alternative international ratings agency is what European governments would
like to see in place soon to break the power of the US bellwethers. A
German-conceived model has just completed a first test run.
Crisis-stricken
eurozone countries don't have to bring up the rear when assessing their
creditworthiness with a non-standard set of gauging parameters, Germany's
Bertelsmann Foundation claimed on Tuesday while presenting the test-run results
of its alternative international ratings agency.
The
non-profit credit rating agency INCRA analyzed Brazil, Japan, France, Germany
and Italy for test purposes, with the latter surprisingly taking third position
in terms of long-term creditworthiness. Italy did so well "because of its
financial crisis management capabilities," the Bertelsmann Foundation
argued.
In
scrutinizing the countries in question, INCRA applied standard macroeconomic
indicators as well as a set of forward-looking factors such as a nation's
reform endeavors and its willingness to carry out necessary investments.
Broadside
at Moody's and Co.
Germany excelled
among the nations examined due to its robust economy and labor market. But the
study warned that the country must not rest on its laurels and tackle
demographic issues in a more courageous way.
INCRA has
yet to find the approval of the world's leading industrialized and emerging
nations. It is to operate as a counterweight to the US' three heavyweights in
the business (Moody's, Fitch and Standard & Poor's) which have been accused
by European governments of having too much influence on the fate of financial
markets in the euro area.
The
alternative ratings agency would only be responsible for assessing the
performance of nations and international organizations, and it would do so free
of charge, said the head of the Bertelsmann Foundation, Aart de Geus. He added
that running costs would have to be born by governments, foundations and
private entrepreneurs.
hg/mz (AFP, dpa)
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