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SFA, Sustainable Future Rating Agency

The need to establish global rating agency, totally self-sufficient without need of any government or private subsidy, to classify those companies that achieve a balance between benefits and contribution to stability in all aspects.

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Written by DeletedUser

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We are in the era of rating agencies and  Organizations for Standardization with respect to operational issues, performance and benefits.  We need to establish a global agency, totally self-sufficient without need of any government subsidy or private, based in social nets data, to classify those companies that achieve a balance between benefits and contribution to stability in all aspects, economic, social and environmental. It could be called sustainable futures agency.

Among all the questions is necessary to explain the development of a modern method of mapping for rating scales, without  the usage of econometric model.  At present we  construct econometric models for forecasting bank long-term credit ratings based only on the public information, including the financial reports of banks and other open statistical data. The analysis of such models allows studying various factors influencing process of rating formation for international agencies, to compare rating estimations of agencies with each other, and also to analyze predictive power of the obtained models. In practice such models can be used within the approach to a risk assessment on the basis of internal ratings (Internal Rating Based Approach), regulated by the Basel II agreement, and also by banking supervisor authorities as a component of Early Warning Systems. 

 

Actually we assess the basic financial and macroeconomic indicators that have the greatest effect at bank credit ratings of the three largest international agencies: Moody's Investors Service (Moody’s), Standard and Poor’s (S&P) and Fitch Ratings (Fitch). That are under the supervision of governments, multinationals, private interests outside  future approaches. No plans to 25 years or 50 years, we live the present trends quickly and without sustainable base on  long terms.  Should be political decisions adopted and approved  by consensus  must  be respected in the future regardless of future governments of different ideologies. Also private companies should adopt mandatory long-term plans. We have to evaluate  companies models  by using the social  nets  data from all countries  for a certain period, then examine  it  and evaluate publicly from a rating of companies futures  based just on  people confidence . 

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DeletedUser

I like this idea of a rating agency capability from all outside sources....