Jules Kroll, who sold his investigative information business to Marsh & McLennan for US 1.9 billion several years ago, is back at the helm of an initiative to enter into credit rating industry.  He is also on to a second initiative ‘K2 Global Partners, which will perform intelligence work for corporations and other clients.  Mr. Kroll said he was negotiating with several unidentified companies that already had the capabilities to analyze operational risk, portfolio risk and credit. And like many others, he is dismissive of the existing field.  “There is a lack of credibility in the rating agencies as a result of what happened in the mortgage crisis,” he said in an interview last week.

Mr. Kroll is not the only one who feels that the current general disenchantment with the ratings industry presents itself as a new opportunity.  Jerome Cazes, Director General of Coface has also thrown his hat in the ring announcing the creation of a global credit rating agency.   Perhaps the efforts of Mr. Kroll and Mr. Cazes will accelerate the undergoing change in the current ratings culture.   Source:  Financial Times and New York Times

BIIA Newsletter January 2010 Issue