When will Roland Berger's initiated ratings firm publish its first rating?
Settled on 04/30/2013 21:15 Settled by kruijs
Negotiations with a private European group of investors ended without agreement, putting an end to the project to found the European Rating Agency, Frankfurt-based Chief Executive Officer Markus Krall said in an e-mailed statement today.
Roland Berger Strategy Consultants is close to launching a European ratings firm, the company said Thursday.
After negotiations with finance institutions, there are now a sufficient number of participants to contribute to the firm, which will be established soon, Roland Berger said.
Until now, U.S. rating companies have dominated the market for accessing sovereign and corporate credit. In the wake of the financial crisis, European politicians advocated the creation of an independent counterweight, with some saying that ratings-firm downgrades of Greece and other debt-ridden countries contributed to the crisis.
Markus Krall, a senior partner at Roland Berger, will be the founding chief executive officer of the firm and will step down from his position at Roland Berger to focus exclusively on the new company. "The complex tasks involved in creating a new international rating agency can't be managed alongside the time-intensive demands of senior partner consulting," Krall said.
Roland Berger Chairman Burkhard Schwenker will be the first member and lead the build-up of an advisory council for the ratings firm.
A foundation and an operating company will be established as separate units which can close contracts with investors, he added. "We will complete the collection of funding contributions and begin operation of a new and independent rating agency," Krall said.
This is a user submitted question. Players make predictions on what they expect to be the actual outcome.
Register for free and get 1,000 KtN$
in virtual cash to start predicting!
Limited offer: Sign up today and recieve double cash!