The current joke on the street goes something like this: Do you know what a cov-lite rating is? Well, just the kind of rating the rating agencies were giving - no verification, no due diligence.

While rating agencies have taken the heat from disillusioned investors, they are now fighting back. The agencies are speaking out not only in the Senate - which listened to the testimony of executives from Moody's Investors Service and Standard & Poor's last week - but also, specifically for Moody's, by enhancing its RMBS rating methods.

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