Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-06-15-Speech-2-459"
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"en.20100615.28.2-459"2
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"Mr President, I welcome the debate on rating agencies. We do need to look at the reliance on ratings and how to encourage more agencies so that there is more competition, as well as the issue of conflict of interest with respect to borrower-paid ratings. However, I would say that it has always been well known to every investor that this potential for conflict existed and that credit ratings are themselves not a recommendation to buy or sell.
We should also remember that, to achieve our 2020 goals, the EU needs investment and that needs market confidence, and rating agencies are a vital part of market confidence. When ratings work, they increase capital markets’ access for borrowers, lower interest rates and thus, for sovereign issuers, save taxpayers’ money. They also serve to give investors some guidance but, as I said, not buy and sell decisions.
Please remember that in Europe, no AAA-rated sovereign or corporate issuer has ever defaulted. Even in this crisis, the level of AAA defaults in structured credits in Europe is less than 0.3%, which means that 99.9% of AAAs have not defaulted. We do need this investor confidence. We do need to look at our rating agencies, but please remember that they have not got everything wrong."@en1
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