Of Special Interest
2nd August 2011
Moody's AAA for Footballer Ronaldo as collateral
An interesting decision by Moody's is to support the use of the footballer, Cristiano Ronaldo, as emergency collateral by Bankia, required for emergency liquidity support from the European Central Bank. According to media reports the loan was 'AAA' rated by Moody's.
It may be questionable whether this involvement by Moody's will restore the regulators or public confidence in the big rating agencies - a footballer's time as a valuable confidence can be transitory and end suddenly. There is also the question as to how the collateral might be collected should the worst happen and Bankia default.