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L’Osservatore puts Standard and Poor’s under fire


VATICAN CITY ( The Vatican newspaper, L’Osservatore Romano, ripped into the credit-rating agency, Standard and Poor’s, for its decision to downgrade the bonds of nine European countries in the first week of January.

The decision from Standard and Poor’s came at a time when credit markets were beginning to recover from earlier worries, the Vatican newspaper claims in an article entitled, Suspicious Timing.

Although L’Osservatore Romano says that the decision to downgrade European bond ratings had been widely anticipated, it has taken on a conspiratorial tone. The unofficial Vatican mouthpiece says that the announcement showed “perfect and suspicious timing.” claims that the article seems to imply that Standard and Poor’s was deliberately acting to prolong a European economic crisis.

L’Osservatore Romano goes on to question the accuracy of ratings by Standard and Poor’s and its competitors, saying that “even Beijing has raised doubts about the credibility of these rating agencies.”

The credit-rating agencies have been denounced by other critics recently for their failure to anticipate the collapse of the markets in financial derivatives, one that helped to precipitate the economic collapse of 2008.


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