How important are ratings given to companies and countries by agencies like Standard & Poor's and Moody's?

As important as hedge funds to stock markets !

Well this is really a question that calls for a subjective response that I think the average consumer--i.e., the average reader of JapanToday--is probably not qualified to make. Asking for a quantitative judgment is even more difficult unless you are an economist or financier. And there is the qualitative query, as well--how important to whom??? Something more specific might be helpful: "Do you believe ratings agencies have too much influence in the market or in political policy-making?" or perhaps "Do you believe the ratings published by credit rating agencies are truly objective?"

The international credit-rating agencies originally played an important role, especially for smaller foreign governments and institutions looking to either raise capital or publicize the stability of their own underlying economics. But as their independence has gradually eroded, their ability to provide truly useful ratings has also been compromised, despite the fact that their influence on policy remains undiminished. They have been allowed to wield a very big stick with few or no restraints, a situation which must change if the flow or accurate, reliable analysis and information is to be maintained.

35% important.

Important because they move markets and become self-fulfilling prophecies. But past has shown they are not always honest.

Well, if they need to raise or borrow money, pretty darn important. If they have zero debt and don't need to borrow, then maybe less important.

Can't trust private companies and can't trust governments. Too much conflict of interests.

Less and less. Actually, its shocking that companies and countries still use their analysis. Those US based ratings agencies got it all wrong during the sub-prime crisis and lehman shock.

they are a tool world financial elite uses to compel national elites to pass on the costs of systemic financial collapse (of aforementioned intl. elite's doing) on to the working population of each country.

their slogan: austerity for middle and lower classes or watch your country's ratings go down and interest up! france, iceland, uk, japan, greece, germany, romania, usa, aus... every time the same slogan, and every time masses fall for it hook, line and sinker.

I have noticed every hole in the wall dodgy "ACME Asset Management" boiler room, I mean brokerage in Tokyo have a S&P & Moody link posted on their site... and that's about it. Rubbish reports for rubbish companies. Maybe ask the Gordon Geckos down in Toranoman with zero credit and zero equity this one....

Are the ratings important? Yes. But should they be given that importance? No.

My very simplistic reasoning on this is that these people work in a world of serious money but seem not to be related to it. Who pays their wages, what motivates the work they do? Are we to believe that there is this group of financial saints that sit around all day looking out for all the large companies and counties to protect them from making terrible mistakes without some self interest? Are we to believe in financial social workers who only have our best interests at heart?

They are private companies that work for their own interests yet those interests do not show in the statements they make. Granted if they got it right all the time we might simply accept what they do without question, but they don’t.

I need to know why you are telling me something as well as what you are telling me before I give you credit for what you are telling me.

Answer to this is amazingly simple:

15+ years ago YES!

Since the mid 90s NO!

Reason is since mid 90s ratings has been a voodoo science simply plain BS & lies

next question pls