FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Why did the credit rating agencies not spot any problems at Quinn Group?

In light of financial difficulties at Quinn Group, owner of the Quinn Insurance operation, there is concern about the position of credit rating agencies regarding the debt of Quinn Group. In August 2007, when the credit crunch began to take hold, the Moody's credit rating agency came out with a "positive outlook" on Quinn Group despite the fact that the company had begun to invest significant amounts of money into Anglo-Irish Bank which later hit serious financial trouble.

In 2008 Quinn Group cancelled its contract with Moody's credit rating agency suggesting that even though the company was on "positive outlook" there seemed little chance of an upgrade in the short-term. While the position of credit rating agencies around the world is imperative to financial markets, there is growing concern that some of the major financial collapses seen in the past were not flagged by these companies.

The truth of the matter is that credit rating agencies can only arrive at decisions regarding ratings on the information available to them, so if vital information is not available at the time that a rating is changed there is the chance it could potentially not reflect the underlying situation.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue