International rating agency Moody's admits to have issued false ratings on the US economy in 2008

International rating agency Moody's admits to have issued false ratings on the US economy in 2008
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Sterling NewsRoom

International rating agency Moody's has admitted to have issued false ratings on the United States economy in 2008.
Their actions caused a financial crisis in that country.
The agency has now agreed to pay N$11,7 billion in penalties, for its role in the American financial crisis that year.
NBC news spoke to a local research analyst on the credibility of rating agencies, and the potential they have for causing damage to the economies of smaller countries.
Moody's recently downgraded Namibia's economic outlook from stable, to negative.
Now that the rating agency has admitted to having issued false ratings which had dire consequences for a major economy, its credibility is shattered.
The false ratings led to a market crash of the American economy.
Local research analyst, Ngoni Bopoto, says one of the questions now being raised, is who owns these rating agencies and their agendas.
Bopoto, a research analyst with Namibia Equity Brokers, says the Moody's incident is a warning for governments to always question the findings of such agencies.
Some criticize that rating agencies tend to rate western, developed nations, more favourably than developing countries, especially countries in Sub-Saharan Africa.
Bopoto says it is time for rated countries to do their own research, and weigh up the ratings against the reality on the ground.