In a move that could have come straight from an "Onion" article, S&P has downgraded Moody's.
S&P placed an A-1 short-term rating for Moody's on CreditWatch with negative implications. In a press release, the company said: "We believe there may be added risk to U.S.-based credit-rating agency Moody's business profile following recent U.S. legislation that may lower margins and increase litigation related costs for credit rating agencies."
As Zero Hedge's Tyler Durden explains: "S&P: a credit rating agency, is downgrading Moody's, a credit rating agency, on concerns [financial regulation] will impair credit rating agencies."
Who wouldn't be surprised to see Moody's take S&P parent McGraw-Hill Cos. Inc. down a few notches in a ridiculous -- albeit delightful to watch -- race to the bottom? Will there be some sort of implosion of consumer confidence that will get sucked into a gap in the space-time continuum? Just suggestions.