Moody’s Cuts 2008 Projections, Predicts More Credit Issues Coming

Palm Beach, Fla.–Moody’s Corp.–the world’s second-largest credit-ratings provider–said this week that the credit crisis will continue longer than originally thought and also reduced its 2008 forecast, Bloomberg reports.”Credit concerns are recycling, and this is rekindling more recycled stresses in areas that have already been hit,'” Moody’s CEO Raymond McDaniel said at a conference hosted by Bear Stearns Cos. in Palm Beach, Fla. “There’s more uncertainty about the pace of recovery in 2008.”Moody’s and Standard & Poor’s are experiencing a drop in demand, reportedly influenced by their eagerness to assign AAA credit ratings to subprime mortgage securities that later fell in value.