Upstart ratings agency looks to fill gap where Moody’s, S&P fell short

TRD New York /
May.May 17, 2010 10:08 AM

At age 68, longtime private detective Jules Kroll is breaking into the credit-rating business with an eye toward besting his besieged competitors with old-fashioned investigative techniques. While Moody’s Investor Service and Standard & Poor’s have seen their reputations tarnished by the inflated junk mortgage ratings that contributed to the housing bust — last week, news broke that Attorney General Andrew Cuomo was investigating the relationships between ratings agencies and eight big Wall Street banks — Kroll’s upstart agency plans to capitalize on their fall from power. Kroll Bond Ratings, set to launch in July, plans to knock on doors to see if people are still living in their homes, rather than rely on financial models or reports from loan servicers. But that’s not to say he’ll succeed: despite their recent failings, the major ratings agencies haven’t seen a decline in their market share. Moody’s and Standard & Poor’s control a combined 75 percent of the market; Fitch comes in third with 20 percent. Still, Kroll said he’s hiring a staff of 25 including number-crunchers, auditors and investigators and expects to generate up to $400 million in annual revenue by 2015. [Crain’s]

Related Articles

Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)

Owners of some residential properties can’t hide behind
LLCs anymore

Governor Andrew Cuomo and 538 Johnson Avenue in Brooklyn (Credit: Google Maps and Getty Images)

Landlords take another hit: Cuomo signs expanded Loft Law

Governor Andrew Cuomo (Credit: Getty Images)

Cuomo wants to exempt NYC from prevailing wage bill

Governor Andrew Cuomo (Credit: Getty Images)

Cuomo makes prevailing wage pitch in proposed 2021 budget

Governor Andrew Cuomo outlines strategies for the 2021 New York Budget (Credit: Flickr)

Cuomo spares real estate in plan to close $6B budget gap

From left: Deputy Mayor of Housing and Economic Development Vicki Been, Sen. Brian Kavanagh (inset), Brooklyn Borough President Eric Adams, State Division of Homes and Community Renewal Commissioner Ruthanne Visnauskas (inset), Council member Keith Powers, with Governor Andrew Cuomo and Mayor Bill de Blasio (background) (Credit: Anuja Shakya, Getty Images)

Politico shows and no-shows: What public officials attended the REBNY gala?

Governor Andrew Cuomo (Credit: Getty Images)

Cuomo rakes in real estate cash — but not from LLCs

Rep. Alexandria Ocasio-Cortez, Governor Andrew Cuomo (inset) and a rendering of LaGuardia's AirTrain (Credit: Getty Images, ANewLGA)

AOC joins in fight against Cuomo’s $2B LaGuardia AirTrain project