A second rate

Whose bread I eat, his song I sing. That’s generally the principle upon which Wall Street operates. Credit rating agencies, in particular, have been accused of a conflict of interest. After all, they’re paid by the companies whose credit they assess. Yet the ratings are used by investors. Such criticism is belied by Moody’s decision to introduce covenant rankings. The drive for shareholder value often ends up with firms taking on more debt. That normally hurts bondholders, who find their highl...