S&P launches new credit scores for 26,000 companies

Reuters via Fidelity.com ^ | May 4, 2010 | Reuters

[mlocher]

NEW YORK (Reuters) - S&P Valuation and Risk Strategies, part of McGraw-Hill Co's Standard & Poor's, has launched a new credit score tool that lets users compare credit profiles of more than 26,000 companies worldwide.

The so-called credit health panel can provide default probabilities and overall credit health scores for the largest universe of companies ever addressed by S&P, the company said in a statement on Tuesday.

Overall scores will be based on a firm's operational risks and its ability to generate cash and meet its financial obligations. Users can also assess default risks over the next 12 months based on financial, industry and economic factors.

The service is targeted at commercial lenders, corporate treasurers and risk management professionals, Michael Mastropaolo, a director with S&P Valuation and Risk Strategies, said in an interview. S&P Valuation and Risk Strategies is independent from other groups in S&P, including S&P Ratings Services.

[mlocher]

My take on this is that S&P has admitted that it cannot accurately rate corporate bonds. Therefore, it will pass on to investors raw data that S&P cannot properly interpret.

[FormerACLUmember]

How about companies seized by the democrat party, like GM and Chrysler?