Fitch Ratings

Categories: Metrics, Accounting

Google. Facebook. Amazon. The big three. At least this week.

Well, for a much longer time, Fitch has been the 3rd leg on the, uh…stool. Moody’s supports this leg. Standard & Poor's supports this leg. And the big fat guy who sits right here? Yeah, that’s you.

You, the big fat-walleted bond investor who relies on the scores of ratings services, in part, like these to figure how much risk premium you should attach to the bonds you are buying...or rather, the interest rate rent you should be charging the issuers for the privilege of renting your money.

Distinctively for Fitch’s? It’s owned (mostly) by Hearst. Yes that Hearst. Rosebud…William Randolph. First big swingin’ media mogul. “If we lose a million dollars a year, we’ll have to shut our doors in oh a hundred years…” Fitch’s is a 100-year-old global firm with feet in London and New York.

And after allll that time, you’d think they could have come up with something a bit more creative than their bond ratings…which look eerily similar to those of Moody's and Standard and Poor's. Had Shmoop owned a bond ratings service...uh, we’d have had ratings more like this:

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:-P

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Finance: What is Fitch Investors Service...6 Views

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Finance a la shmoop what is Fitch investors service? Google, Facebook, Amazon

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the big three not least they are this week well for a much longer time Fitch

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has been the third leg on the you know stool Moody's supports this leg standard [Fitch, Moody's and S&P shown on a stool]

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and poors supports this leg and the big fat guy who sits right here yeah that's

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you, you the big fat walletd bond investor who relies on the scores of

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rating services in part like these to figure out how much risk premium you

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should attach to the bonds you're buying or rather the interest rate rent you

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should be charging the issuers for the privilege of renting your money

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well distinctively for Fitch's rating service well it's owned mostly by Hurst

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yes William Randolph flavored that Hurst you know rosebud [Man whispers rosebud]

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yeah well that's William Randolph yeah first big swing and media mogul no other

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kind of mogul you know if we lose a million dollars a year we'll have to

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shut our doors you know a hundred years yeah that one all right well Fitch's is

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a hundred-year-old global firm with feet in london and new york and well pretty

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much everywhere people rent money in the form of bonds and after all that time [Fitch's locations appear across the map]

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you'd think they could have come up with something a bit more creative than their

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bond rating system right here this thing yeah

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looks eerily similar to those of Moody's and Standard & Poor's hmm and well had

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shmoop owned a bond rating service well we'd have had ratings like this [Shmoop ratings service appears]

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