The chief executive of rating agency Moody's, which yesterday reported a surge in second quarter profits, has said he does not expect the credit markets to be paralysed by the spike in volatility over the last six weeks.

Raymond McDaniel, who oversaw a rise in net income at the agency to $263m (€192m) from $172m a year earlier, said there is obviously "significant uncertainty and instability in some sectors of the debt markets."