S&P readies a belated upgrade to U.S. debt:
The ratings agency Standard & Poor’s said late on Monday that its president, Deven Sharma, who has become the public face of the firm in the wake of its historic downgrade on the United States’ long-term debt rating, will step down and leave the company by the end of the year. The decision by Mr. Sharma to resign comes as the ratings agency is under pressure from several fronts, including an inquiry by the Justice Department into its ratings of subprime mortgage securities and a push by activist investors to break up its parent company, McGraw-Hill….
His replacement, Mr. Peterson, 53, is currently the chief operating officer of Citibank, the banking unit of Citigroup.
I note that the one thing the New York Times does not assure us was that the management change was not the result of the recent downgrade of U.S. debt. No doubt Mr. Citibank already understands that an review of that decision and eventual restoration of AAA status is in the best interest of his continued employment.
Unless, of course, it is decided the time is right to debut the new, super-safe, guaranteed AAAA rating.