Wiki-Style Credit Rating to Challenge Major Agencies

By Christian Watjen
Epoch Times Staff
Created: November 29, 2012 Last Updated: November 29, 2012
Related articles: United States » West
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A San Francisco-based non-profit credit rating agency is trying to provide an alternative to traditional credit rating agencies using a Wiki-based rating platform.

Public Sector Credit Solutions (PSCS) announced a collaboration with Wikirating, a Swiss credit rating agency on Nov. 28. PSCS developed an open-source software platform for the rating of government bonds and strives to more accurately predict government debt crises. Wikirating uses a Wiki-media platform, which can be edited by registered users. 

“Wikirating achieved a high profile after its launch and has excellent technology that we are anxious to leverage,” said Marc Joffe, founder and a former senior director at Moody’s Analytics, according to a press release.

PSCS was created out of awareness that the methods of dominant credit rating agencies, like Moody’s, and Standard & Poor’s, are “opaque, imprecise, and unscientific,” said Joffe. Since May, PSCS has released 13 default probability models, including for California, the United States, and Italy.

Co-founder of Wikirating, Dorian Credé said, “Because PSCF is open source and all its inputs and outputs are transparent, it is an excellent complement to other methodologies we currently host,” according to a press statement.

Wikirating has rated over 100 countries and 20 companies so far, utilizing a method of aggregating financial data. By joining forces, both agencies hope to be better able to deliver transparent, independent, cost-effective, and objective credit ratings.

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