Standard & Poor’s would assign ratings higher subprime securities than U.S. Treasury bonds.
According to Bloomberg, the credit rating agency Standard & Poor’s (S&P) could rate AAA subprime securities of Springleaf Mortgage Loan Trust, meaning those securities are safer than the US Treasury bonds, to which less than a month ago the same S&P downgraded from AAA to AA+.
There are the same kind of securities which collapsed in 2008 and ignited the global financial crisis, values that had been rated AAA by the three major U.S. ratings agencies (S&P, Moddy’s and Fitch) therefore there are several ongoing inquiries in the United States (Financial Crisis Inquiry Commission, Senate Permanent Subcommittee on Investigations, SEC, etc.).
There are those who wonder how reliable are these new grades.