MuffCap, LLC has initiated coverage on Moody’s Investor Service with our very lowest “Scandal Sell” rating and a negative outlook on concerns that various governmental and intelligence agencies are likely to act against the firm in the wake of recent ratings issued by Moody’s.

Just in the last several hours Moody’s has downgraded or put on negative outlook: Commerzbank AG, Landesbank Baden-Wuerttemberg, Norddeutsche Landesbank GZ, UniCredit’s German Unit, MDM Bank, Austrian Erste Group Bank AG, Raiffeisen Bank International AG, and Croatia’s capital city, Zagreb. The nationally recognized statistical ratings agency had lowered its outlook on Croatia itself to negative days before.

The Croatian actions, in particular, concern our analysts. Josip Buljević, head of the SOA (Croatian Security and Intelligence Agency) may look like a friendly face to western analysts but he is not to be toyed with.

Additionally, it is clear Moody’s has lost all sense of political caution as well as angered the Germans (again) and this occasions our negative outlook.

MuddCap, LLC is entirely unconcerned, however, by Moody’s action today against Italian UniCredit.

MuffCap, LLC will discuss our newly bullish outlook on life insurance and “key man” policies covering Moody’s executives in a later report.

Clients may obtain the MuffCap Report “Moody’s: Doomed?” by contacting their sales representatives directly.
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