...are at it again. Threatening downgrades against countries (and entire currency unions it seems) because of precarious fiscal positions, etc.
I have outlined my main disagreements with their methodology on this blog multiple times. The world of non-convertible currency creates much different cause and effect relationships than commodity-reserve type of arrangements. Its such a fundamental component of global capital that making an error in this type of analysis unfortunately effects all subsequent conclusions.
And so it goes with the large rating agencies. Inflation, rather than the ability or willingness to pay, is the endgame with non-convertible currency. The definition of "default" is therefore a bit more pliable than the ratings agencies would leave us to believe.