Moody's , S&P downgraded

The news of Moodys and Standard and Poor being not the sole authorities in deciding credit rating was taken by Insurance companies today according to the article in Bloomberg, this will force insurance companies to develop a new way or to enlarge internal credit risk department. Thus increasing their headache of measuring the risk instead of outsourcing, but reducing the discrepency, thus putting dice,of stability in deciding future risks assesment, rolling. LINK

April 3 (Bloomberg) -- U.S. state insurance regulators may reduce their dependence on firms including Standard & Poor’s and Moody’s Investors Service, saying they are looking into ratings “shortcomings.”

The National Association of Insurance Commissioners has assigned a group to explore “the reasons for recent rating shortcomings” and “the problems inherent in reliance on ratings,” the group said in a statement on its Web site.

The watchdogs are conducting their review after insurers’ portfolios were buffeted by downgrades to commercial mortgage- backed securities held to help back policies. Regulators currently rely on ratings assigned by S&P, Moody’s and other firms when calculating the amount of capital insurance companies must hold to protect against losses on CMBS and other so-called