FT Alphaville » KPMG, PwC eye rating move.
KPMG and PwC have considered entering the credit rating business, in a move that would pitch two top accountancy firms against the current top three agencies, Moody’s, S&P and Fitch, reports the FT.
It should suit them down to the ground.
High fees for acting in the client's interest whilst pretending what you say is objective information for public use with almost no chnace of a claim arising for getting things wrong.
The Big 4 would be on familiar territory.
Anyone recognise the audit in that description?
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Reading the FT article it seems that KPMG are reviewing it “passively”, while PwC have rejected the idea because of the conflict with auditing. Given that PwC holds about 35-40% of the larger audits (depending on how they are classified), that companies are under pressure to rotate auditors and prior engagement as a rating agency would likely disqualify an auditor, I would expect the odds of any large audit firm getting into the rating business as close to 0%.