Tuesday July 22, 2014
BOARDROOM JOURNAL

The Old World Also Rises

Powerful countries such as the U.S., China, Russia and Japan are facing the highest capital costs amidst ratings downgrades.

I spun the globe and realized Anglo-Saxon and Scandinavian bloodlines account for most of the last remaining major economies with AAA ratings on our planet: Australia, Canada, Denmark, Finland, Germany, Netherlands, Norway, Singapore (under British control for most of its modern history until 1963), Sweden, Switzerland and the United Kingdom.

Jeffrey M. Cunningham

The no-shows are the United States, China, Russia, Brazil, Japan, and most of industrial Europe including Austria and France. Consequentially, capital costs will rise for these countries. Call us sluggish, not sluggers. (On the business side, ExxonMobil, Johnson & Johnson, Microsoft and ADP are the only U.S. companies to enjoy AAA ratings.)

Jeff Cunningham writes about leadership and business, boards and corporate governance. He is the founder of Directorship magazine and currently serves as managing director and senior advisor to NACD. Previously, he was president of the Internet venture firm CMGI, publisher of Forbes and managing partner of the U.K. private equity firm Schroders. He has served as an independent board chair or director of 10 public companies. The views expressed are his own.

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