The Big Three Rating Agencies

Mirabeau was immediately struck by how different types of industrial data from the past year appeared on the same chart, clearly showing the changing trends.

"Your Highness, how did you come up with this method? It's truly amazing!" He flipped through the different statistical charts one by one, completely captivated by them. "God really favors you! Look at these charts; you can understand last year's industry situation in just a few minutes."

He had just been explaining for almost an hour.

These charts have achieved astonishing results in improving work efficiency.

He immediately thought of more applications and excitedly said, "Perhaps we can extend this data collection method to factory production and administration."

Bayei added, "And there's scientific research. That makes the paper clearer and easier to read."

"Yes, it's absolutely a great innovation!" Mirabeau looked at Joseph. "Your Highness, I dare say that if government departments and factory managers used these charts to process documents, it would greatly improve the efficiency of the entire country."

"I suggest that it should be promoted nationwide as soon as possible, and even mandated by government documents."

Joseph was somewhat bewildered by what they were saying. He had only wanted Mirabeau's report to be more concise and efficient, but he hadn't expected it to have such a significant impact.

He slapped his forehead. He was used to seeing statistical charts and graphs, so he subconsciously thought this was nothing special. Mirabeau was right; these kinds of small techniques could greatly improve management efficiency, almost like Excel in the 18th century.

Joseph then nodded to Mirabeau and said, "Very well, please organize some scholars to help me compile the chart and statistical method into a manual and print it in large quantities. As for how to teach it to managers..."

Mirabeau immediately chimed in, "Your Highness, we can incorporate this statistical method into our Production Standardization System, with Mr. Jean Sonnet's management consulting firm responsible for teaching it."

Joseph nodded. These things that seem simple to us now actually required professional companies to promote them in the 18th century. Just like in the early 21st century, you needed to attend a training course to learn how to create an Excel spreadsheet.

Speaking of Production Standardization System, Joseph couldn't help but think of another issue: factories that adopt Standardized Production Model should be rewarded, since they have contributed to the overall improvement of the country's productivity.

His first thought was tax cuts, but he quickly shook his head. Tax rates had already been significantly reduced through initiatives like Industrial Development Zone and the promotion of Automatic Loom; they really couldn't be lowered any further, especially considering France's debt of over 2 billion euros.

Perhaps, establishing Rating Agency should be put on the agenda.

With Rating Agency, companies that have achieved production standardization can be given higher ratings. While ratings themselves don't generate profits, they reflect a company's strength. Both investors and consumers will naturally choose companies with higher ratings. Furthermore, companies with higher ratings are more likely to receive loan approvals from banks.

Moreover, they can use rating standards to guide the company's development direction. Even after the Rating Agency has enough influence, they can learn from the practices of later Western countries and create a "Sovereign Credit Rating" business.

Sovereign Credit Rating is an assessment of the credit quality of a country or region. It includes multiple aspects such as national governance, economic performance, policy level, social structure, and government Finance strength.

You should know that the three major Rating Agency in later generations were practically all-powerful. They could easily downgrade any country's sovereign rating, scaring away foreign investment would be a minor issue, and in severe cases, it could even trigger an economic crisis for the country!

Once Rating Agency are established, France will have another economic weapon at its disposal. Anyone who dares to go to war with France will be given the shock of a series of sovereign rating downgrades. Even if it can't bankrupt their national Government Bonds, it can at least increase their financing costs and significantly increase their military spending pressure.

So, who would be the most suitable person to handle the establishment of Rating Agency?

Joseph pondered to himself that, first and foremost, he couldn't let the French Government's influence show, otherwise it would appear insufficiently objective and independent.

Jean Sonnet's consulting firm is quite good. To promote production standardization, it has more than a thousand employees. It's entirely possible to spin off a portion of it to establish a Rating Agency.

Then the French Chamber of Commerce stepped in and, together with major banks, established a Rating Agency.

Another option is to establish one in one of France's allies. After all, if the Rating Agency are all France, it will inevitably make some countries feel that there is something fishy about the ratings when it comes to sovereign ratings of other countries.

However, regardless of who spearheaded their establishment, or whether they are based in France or abroad, these rating agencies must firmly retain control over the decision-making process.

Needless to say, Jean Sonnet's company was initially created to promote standardized production, and he funded its establishment himself. Naturally, he also holds a controlling stake in the Rating Agency that was spun off from it.

The Chamber of Commerce simply cannot ignore the Royal House's opinion, and the funds also come from the French Reserve Bank, so gaining control is not difficult.

As for the foreign Rating Agency, we need to think carefully. It would be best to find a local agency to act as White Gloves, with France investment and controlling stake.

The location could be Spain, since they are relatives of the Bourbon family.

Joseph roughly outlined the Rating Agency's plans and continued talking to Mirabeau about the state of industrial development. His gaze inadvertently swept over the Line Chart he had just drawn, and he suddenly felt that something was amiss.

He picked up the chart and looked at it carefully. Previously, the data was densely packed, making it difficult to notice the problem. Only now did he realize from the chart that the first nine months of last year had been consistently upward, but starting in October, except for Papermaking and brewing, the growth of other industries began to slow down.

He pointed to the lines on the map, then turned to the Minister of Industry: "Earl Mirabeau, look here. It seems that since October, there has been some problem with industrial development?"

"Yes, Your Highness," Mirabeau nodded hurriedly, "This is also one of the main things I wanted to report to you today."

"The momentum of industrial development has indeed slowed down, and there are two main factors contributing to this situation."

"Firstly, there's insufficient investment. After investing in the Luxembourg Iron Mine, the Industrial Development Fund's accounts were nearly empty. Most Investor interested in industry had already completed their investments in the first half of the year, and some later entered the Southern Netherlands Coal Mine; now, new investors are becoming increasingly scarce."

The Minister of Industry paused, then continued, "Secondly, the low rate of return on industrial investment has led to new investors remaining hesitant, and factories are unwilling to significantly increase production."