S&P Introduces Risk-Adjusted Capital Ratio For Financial Institutions

Earlier today (April 21, 2009) Standard & Poor's introduced a new risk-adjusted capital (RAC) ratio for financial institutions. As described in a press release issued by S&P, "The RAC aims to provide a globally consistent and independent view of capital adequacy for each of the financial institutions we rate.... and we intend to use it as a starting point for our analysis of capital adequacy." Read more in this FEI Summary, which includes a link to an article published today by S&P highlighting why they developed the new RAC ratio and how they intend to apply it.