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Planet Money did a podcast the other day on exactly how the ratings are created. http://www.npr.org/blogs/money/2011/07/26/138721364/the-tuesday-podcast-would-a

by mhansen 15y ago

Planet Money did a podcast the other day on exactly how the ratings are created. http://www.npr.org/blogs/money/2011/07/26/138721364/the-tuesday-podcast-would-a-downgrade-matter http://www.npr.org/blogs/money/2011/07/26/138721364/the-tues... TLDL: There's no algorithm. There's no one ratio you can look at. Analysts travel to the country, assess how likely it is to pay its debt, and report back. A few people listen to the evidence then take a vote on the new rating.

joezydeco 15y ago
And, more importantly, a change in rating from AAA to AA+ doesn't mean anything compared to a sovereign being derated from investment-grade to non-investment-grade. Derating may be a black eye to the US's status in the world economy, it's hardly the end of anyone investing in Treasury Bills. [EDIT] That's from the podcast itself. I listened to the whole thing. Downvote the parent if you disagree.