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09 november 2009

A Moody's, S&P's Fitch's rating might harm your health

“Like on a package of cigarettes: This rating may harm your health”.

According to Professor de Grauwe of the University of Louvain, this remark should be made on any of the ratings provided by the big three credit-rating agencies.

In our opinion and as long as their CAP-profile indicates less than 80% correct results, it is a quite right judgment, especially when their timing is also involved.

To downgrade Enron one week before Chapter 11, or to downgrade Ahold when its stock are listed Euro 3,50 coming from 34, cannot likely be mentioned in time.

How frustrated this may seem for all users, we must realize that from nature itself we learn that after a fire in the woods, nature will present new and fresh green. Young, elegant, better equipped for local circumstances especially if cool fresh water takes care for its nutrition. New rating agencies that filter with almost 100% security all bad companies from the universe and reduce their opportunity losses (indicating a good company as bad) to only 3%.

If, in order to prove to the world that kind of quality of the so-called type I and II mistakes and furthermore you are the first rating company in the world that publicly offers its rating of the stock-exchange for investment purposes and when its results (yield) in seven years real life stock picking is now 120% better than its universe or 90% higher than Warren Buffet one might say that those rating do what they offer to do. They rate correctly.

As CEO of the OK-Rating Institute we took the challenge to grow the OK-Score as Europe’s answer to the unqualified hegemony from the United States.

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