Slovenia’s ratings: why so varied?
Credit rating agency Moody’s downgraded Slovenia on Tuesday to junk status, citing its weak banking system. After its being so often compared to Cyprus, you might think that’s fair enough.
But the downgrade leaves Slovenia in something of an odd position: it now has the widest range of ratings from the three main agencies out of any sovereign. Why the spread? Continue reading »
BNDES, Caixa unfazed by rating downgrade
If anyone was worried by Moody’s downgrade of BNDES and Caixa Econômica, the banks themselves seemed unruffled. Continue reading »
Egypt downgraded by Moody’s, again
Moody’s Investors Service downgraded Egypt’s government bond rating to Caa1 from B3 on Thursday, moving the country to seven notches below investment grade – barely a month after its previous downgrade on February 12.
The downgrade takes Egypt, by Moody’s definition, from obligations “considered speculative and… subject to high credit risk” to those “judged to be of poor standing and… subject to very high credit risk.” Continue reading »
Moody’s kick in the teeth for Argentina
Two weeks before Argentina has to submit to a US appeals court details of its offer to “holdout” creditors, Moody’s has taken the unusual step of downgrading the country’s foreign law bonds, citing increased default risk. Continue reading »
[snap] Egypt downgraded by Moody’s
Moody’s Investors Service has downgraded Egypt’s government bond rating to B3 from B2 (from five to six notches below investment grade) and kept it on review for a further downgrade.
The move follows fellow rating agency Fitch which downgraded the country on January 30 to B, one notch above Moody’s B3 level. S&P has Egypt on B-, the equivalent level to Moody’s.
Full statement from Moody’s follows. Continue reading »
Turkey rating upgrade: not now
Turkey’s hopes of an investment grade rating from Moody’s have just received, if not a bucket of cold water, then at least a tumbler or two – and shares have sagged.
Ever since Fitch Ratings gave Ankara the investment grade palm last year, hopes had risen that Moody’s would follow suit, so unleashing billions of dollars in institutional investors’ funds. (Many big portfolio investments require an investment grade rating by at least two of the big three agencies.) Continue reading »
Philippines rating: one notch to go
Credit rating agency Moody’s on Monday raised the Philippines’ debt rating to just a notch below investment grade, boosting expectations that the country, one of the world’s few investment bright spots, may finally win an investment grade rating next year.
The Moody’s upgrade aligns its rating with those of Standard & Poor’s and Fitch. Continue reading »
New rating agency to “align with common interests of human society”
Photo: Bloomberg
Credit rating agencies from China, Russia and the US are establishing a joint venture that they say will change the assessing of risk in global finance.
Dagong, a Chinese agency that has repeatedly downgraded the US, Egan-Jones, a small US agency, and Russia’s RusRating said they were answering calls for reform of the international credit rating system by linking forces to create the Universal Credit Rating Group. Continue reading »
South Korean banks: in the clear?
South Korean banks have won a vote of confidence from Moody’s Investors Service, which said they had become more resilient to foreign currency liquidity risks and high levels of household debt default.
It is welcome news for the Korean government as well, as concerns over the vulnerability of Korean banks sharply drove down the won’s value during the 2008-09 financial crisis, stoking a sense of vulnerability in Asia’s fourth-largest economy. Continue reading »
Vietnam: Moody’s downgrade raises spectre of banking bailout
The fallout from Vietnam’s slow-burn economic and banking crisis continues to spread.
On Friday, Moody’s downgraded the Communist-ruled state’s sovereign credit rating because soaring bad debts have limited banks’ ability to lend, damaging the country’s medium-term growth prospects and raising the spectre of a costly government banking bailout. Continue reading »
Moody’s downgrades South Africa
Tough news for Africa’s biggest economy. Credit rating agency Moody’s has downgraded South Africa by one notch to Baa1 from A3.
The country’s sovereign debt is still investment grade, but the agency has left the country on negative outlook, meaning a further downgrade could come. It compounds the bad news of spreading strikes and unrest. South Africa’s inclusion on Monday in a widely-tracked global bond index is not under threat. But having just joined the club, the country won’t want to start by offending the other members. Continue reading »
S Korea: thumbs up from Moody’s
South Korea has won a vote of confidence from Moody’s. The international ratings agency on Monday raised the country’s sovereign credit rating to a par with Japan and China, citing the country’s strong fiscal fundamentals and economic resilience.
The country’s sovereign credit rating was raised by one notch to Aa3 from A1. It is the first time that Korea has hit the double A ratings, the fourth-highest. The upgraded rating is two notches higher than the equivalent from Standard & Poor’s and one step above that from Fitch. Continue reading »
Moody’s downgrade hits Slovenia’s borrowing costs and focus turns to banks
Slovenia’s borrowing costs surged on Friday after Moody’s downgraded its sovereign rating a full three notches, from A2 to Baa2, with continued negative outlook, prompting fears that the Alpine country could be forced to seek a bail-out.
The ratings agency said the move – to just two grades above junk status – reflected problems with Slovenia’s “challenged banking system,” the increasing cost of government borrowing and the country’s deteriorating economic outlook . Continue reading »
Brazilian banks: big is definitely better
Panic set in overnight (okay, yes we are being a bit melodramatic) when Moody’s announced a downgrade of some of the biggest names in Brazilian banking.
Moody’s ratings actions affected the Brazilian subsidiaries of Spain’s Santander, HSBC and ING, as well as the local lenders Bradesco, Banco do Brasil, Itaú-Unibanco, Banco Safra, Votorantim and the exchange operator BM&FBovespa. They were downgraded by one to three notches, mostly to bring them nearer to the sovereign rating as part of a global overhaul of Moody’s view of the financial sector first flagged in February. Continue reading »
S&P: China developers on shaky ground
Bondholders, beware. China’s property developers face rising risks of default, according to the latest stress tests conducted by Moody’s and Standard & Poor’s.
The two rating agencies published reports on Thursday that suggest the sector will continue to deteriorate over the coming months because of falling sales volumes and dwindling funding options. Continue reading »
| About this blog | Headlines email | Blog guide |
| Regulars | Series | Archive |
Older entries
Stefan Wagstyl
Rob Minto
Pan Kwan Yuk
Jonathan Wheatley
Heba Saleh