Cramer Takes Leap of Faith, Recommends Moody's (MCO), S&P (MHP)

Moody's (NYSE: MCO) and Standard & Poor's, of McGraw-Hill (NYSE: MHP), are unchanged in pre-market Friday amid the release of a two-year investigation by the Senate Permanent Subcommittee on Investigations into the ratings agencies. Jim Cramer, on last night's Mad Money, recommended investors take another look at the two even in light of the government probe.

Cramer said raters are back from the dead, having priced in all failed attempts to sue the agencies and coming out with just a slap on the wrist.

With Main Street sentiment labeling the ratings agencies as downright villains -- slapping a AAA rating on just about everything that came through the swinging doors -- no new competition has arisen lately, leaving the duopoly still intact and dominating the industry.

Cramer noted Moody's and S&P are trading stronger than ever, Moody's at 14x expected EPS and McGraw-Hill at 12x. Moody's has a 12 percent growth rate and McGraw-Hill boasts 11 percent earnings growth.

The pundit believes "It might just be time to hold your nose and consider buying them."

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