Downgrades hold no weight
Barbados’ downgrades by rating agencies have no value, says first time Democratic Labour Party candidate for St. Michael South East, Patrick Tannis.
And he further stated that once paraded by the Barbados Labour Party as a foundation for removing the DLP from Government he was certain that they would not mention the downgrades on the campaign trail because they too knew the downgrades had no weight.
The House of Assembly hopeful was last night speaking before a large crowd at the Ivy Housing Area in the Ivy, St. Michael.
Referring to the recent reports that some rating agencies could have been paid to falsify assessments, he said the downgrades which the country suffered at the hands of the same rating agencies may as well not be a reflection of the truth.
“They were relying on those rating agencies, they were relying on those downgrades but those downgrades have no weight, have no value… They don’t have an argument for anything any more,” he said.
“In the case of the United States, just before the meltdown, that meltdown … exposed what the United States government is saying about Standards & Poors, Moody’s, Finch. That talk is that those rating agencies have now come to a place of legal action by the Justice Department of the United States.
“That legal action has so far shown to be US$1 billion that they are charging S&P for issuing to the world, the financial instruments that we have now seen to be the instruments that have caused the global collapse. Those rating agencies said those instruments were fantastic, that they were rated triple A and that everyone should buy them.
“It was those instruments and the following action that caused people to buy those securities that caused the world economy to collapse. And so the United States government said ‘You guys are responsible because you misled…’; that they did something that caused the world to buy something that could not have been triple A rated and so this fight goes on between the United States government and Standards & Poors.”
“Who was it that downgraded Barbados?” he asked. “The same rating company and so if the Barbados Labour Party has pinned on this administration the talk that the rating agencies was right in downgrading Barbados, then we really can’t take that to the bank because the United States government has said to those rating agencies ‘You are not doing your job properly’,” said Tannis. (KC)†