Bloomberg is to introduce a bond rating service to challenge McGraw-Hill’s Standard & Poor’s (MHP), Moody’s Investor Services (MCO), and Fitch Ratings, according to an internal Bloomberg memo. The service will use computer modeling to rate bonds, instead of “subjective judgement,”  Bloomberg will start with U.S. issues before moving to other regions, writes Fleming from the UK’s Daily Mail.

KPMG and PwC are said to be contemplating moving into rating services according to the Financial Times (May 17th 2010).   The accounting profession claims to have the people, skills and knowledge to rate companies.  Conflict of interest however is stumbling block:  Accountants can hardly rate a company if they are paid to perform audits for companies to be rated.  Source: UK’s Daily Mail and Financial Times

BIIA Newsletter May II – 2010 Issue