The credit ratings (credit rating agencies news) industry remains a problem in search of a solution, in the eyes of many. The heart of the issue is the inherent conflict posed by the simple facts that issuers pay for ratings, and the raters have every reason to bow to their clients' wishes. They are only human after all, and they work in public companies with pressure to post profit growth. 

We noted recently that Bloomberg seems set to offer some sort of credit rating services via its terminal. Now comes word from the Financial Times that two of the big four audit firms, PricewaterhouseCoopers (PwC news) and KPMG (KPMG news) have considered entering the market as well.

These firms certainly can lay claim to the expertise necessary for such work. But does it get to the heart of the conflict? Not really. In fact, auditors (audit firm news) know well what the conflict is all about, as they too are paid by the company they are supposed to be rendering objective opinions about. I doubt we'll see a major move by any of the top four into this arena. 

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