“Standard & Poor’s Ratings Services has long declared that its letter-grade ratings are independent and objective, part of a bid to allay concerns over its business model.

“Standard & Poor’s, like all major credit-rating firms, is paid by issuers to rate the securities that they sell.

“Regulators, lawmakers and investors have said the payment system presents a potential conflict of interest that could provide an incentive for Standard & Poor’s and its rivals to cater to bankers and other issuer clients.”

***

Read full Wall Street Journal article here