Some market players seem to have forgotten that the ratings are no more than indicators of default probabilities based on past experiences but were never meant to be guarantees for the future. Along with complacency, there is inertia and sloppiness on the part of investment managers to ask tough questions about the inherent risks of instruments sitting in their portfolios.
Ewart S Williams: The Caribbean Money Market Brokers - impact on Trinidad and Tobago Feature address by Mr Ewart S Williams, Governor of the Central Bank of Trinidad and Tobago, at the launch of the Caribbean Money Market Brokers Composite Leading Indicator, Trinidad, 24 January 2006.