Financial Times FT.com

Moody's looks at ratings rethink

By Paul J Davies and Gillian Tett in London

Published: September 18 2007 03:00 | Last updated: September 18 2007 03:00

Moody's Investors Service is considering overhauling the way it rates complex financial instruments to analyse for the first time how these products might behave in a liquidity shock.

Such measures of so-called "liquidity" and "market value" risk could be issued alongside the traditional ratings, which currently just indicate the risk that an instrument will default.

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