Life of Being a Crown Prince in France

Chapter 552: 463: The Three Major Rating Agencies

Chapter 552: Chapter 463: The Three Major Rating Agencies

When Mirabeau saw the industrial data of different types gathered on a single chart for the past year, clearly showing the trend of changes, he was instantly enlightened.

“Your Highness, how did you think of using this method? It’s truly magical!” He flipped through the various statistical charts, unable to tear himself away. “Looking at these charts, it only takes a few minutes to understand the industrial situation of the last year.”

And yet he had just explained it for nearly an hour.

tical charts so frequently before, he subconsciously thought nothing special of them. Mirabeau was right, such a minor technique could greatly enhance management efficiency, almost equivalent to the 18th century’s Excel.

Joseph immediately nodded to Mirabeau, “Please organize some scholars to help compile the chart statistics into a manual, and print it in large quantities. As for how to teach the managers…”

Mirabeau instantly interrupted, “Your Highness, we could incorporate this statistical method into the standardized production system, and have it taught by Monsieur Laisonne’s management consulting firm.”

Joseph nodded. These things, which seem so simple in future generations, indeed required a professional company to promote in the 18th century. Just like in the early 21st century, one would need to take a class to learn how to create Excel charts.

duction standards could be given a higher rating. Although the ratings themselves would not generate profit, they exemplified the company’s strength. Whether investors or consumers, they would definitely choose companies with higher ratings more often. High-rated companies would also find it easier to pass bank loan approvals.

Moreover, he could use the rating standards to guide the development direction of companies. Even once the rating agency’s influence was substantial, they could follow the Western practice of later generations and launch a “sovereign credit rating” service.

The so-called sovereign credit rating was an assessment of the credit quality of a nation or region, including aspects like national governance, economic performance, policy level, social structure, and government financial strength, among others.

It was well known that in later generations, those three major rating agencies had tremendous influence; merely giving a country a lower sovereign rating could frighten away foreign investments, and in severe cases, even trigger an economic crisis in that country!

Once the rating agency was established, it would be like adding an economic weapon to France’s arsenal. If anyone dared to go to war with France, they would first face a series of sovereign rating downgrades. Even if it couldn’t collapse the opponent’s national debt, it would at least raise their financing costs and greatly increase their military spending pressure.

So, who would be the best candidate to handle establishing the rating agency?

Joseph pondered, concluding that it definitely should not bear the color of the French Government to appear objective and independent.

Laisonne’s consulting firm was quite suitable; for the promotion of standardized production, its staff had already exceeded a thousand people, surely capable of splitting off some to establish a rating agency.

Then, the French Chamber of Commerce would come forward to collaborate with major banks to establish a rating agency.

Additionally, one should be established in France’s allies. After all, to carry out sovereign ratings of other countries, if all rating agencies were French, it would inevitably make some countries perceive manipulation.

However, no matter who led their establishment, whether they were located in France or abroad, he must firmly hold the control of these rating agencies in his own hands.

For Laisonne’s company, there was no need to say, as it was initially created to promote standardized production, and the founding capital was his own. Naturally, he would hold controlling stakes in the split-off rating agency.

is is also one of the main topics I intended to report to you today.

“The momentum of industrial development indeed shows a slowing trend, mainly due to two factors.

“First is the lack of investment. After investing in the Luxembourg iron mines, there wasn’t much money left in the accounts of the Industrial Development Fund. As for investors interested in industry, most had completed their investments in the first half of the year, and some later entered the coal mines in the Southern Netherlands, with new investors becoming increasingly scarce.”

The Minister of Industry paused for a moment, then continued, “Second is the insufficient rate of return on industrial investments, which has also resulted in new investors remaining in a wait-and-see state.”