Moody
May 25th, 2008
NEW YORK–The chief executive officer of Moody’s says he recognizes the seriousness of questions raised by media reports about an alleged error in a model used in certain European debt ratings.
In a letter to customers that was also released to the media, Raymond McDaniel said yesterday he will act "quickly and decisively to address any need for changes."
McDaniel also said Moody’s would change models and methodologies only "to improve the accuracy of our ratings."
On Wednesday, The Financial Times in London said a coding error in a computer model resulted in some products being awarded ratings four notches higher than the securities merited credit scores payday advance.
Reuters News Agency
Filed under: technology by John