I agree that Fitch seems to be more ethical than the bigger S&P and Moody’s, but S&P and Moody’s has set the ethical bar low.
I believe it is only a matter of time now before MBIA gets downgraded also by the other credit rating agencies. The pressure on these guys have to be intense not to downgrade MBIA and other insurers. At stake is potentially $10s to 100s Billions in additional writedowns of MBS and related securities by the big banks. I am willing to bet that the government is in quiet discussions with S&P and Moody’s to delay the eventual downgrade. The pressure from their customers has also got to be very intense.
