Keyword: moodys

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  • Rahm Emanuel's Chicago Nears Fiscal Free Fall

    03/02/2015 4:01:35 PM PST · by raptor22 · 47 replies
    Investor's Business Daily ^ | March 2, 2015 | IBD EDITORIALS
    ities: The problem with socialism, Margaret Thatcher once noted, is you eventually run out of other people's money. In progressive Chicago, that's hit home as Moody's has cut its credit rating to two grades above "junk." Chicago's finances are staggering under the weight of an unfunded pension liability that Moody's Investors Service has estimated at $32 billion, eight times the city's operating revenue. Chicago has a $300 million structural deficit. And Illinois law requires the city to up its 2016 contributions to its police and fire pension funds by $550 million. "This is an unfortunate wake-up call for anyone still...
  • Moody's downgrades Chicago's debt rating (Baa2)

    02/27/2015 5:09:07 PM PST · by Libloather · 17 replies
    Chicago Tribune ^ | 2/27/15 | Heather Gillers, Hal Dardick
    The debt-plagued city of Chicago took another financial blow late Thursday when Moody's Investors Service downgraded the city's debt rating, citing its overwhelming pension burden. Even if recent state pension changes survive a court challenge, the ratings statement said, "we expect Chicago's unfunded pension liabilities — and the costs of servicing those liabilities — to continue to grow, placing significant strain on the city's financial operations." The drop, to a rating of Baa2, could drive up borrowing costs for the city and cause problems with some of Chicago's current interest-rate swap contracts.
  • Moody's Say's cheaper Oil WILL NOT boost global growth...

    02/12/2015 10:25:53 AM PST · by alexmark1917 · 25 replies
    Moody's Say's Cheaper Oil WILL NOT Boost Global Growth... What have I been saying all along... Someone should tell the morons at CNBC... Lower oil prices will fail to give a "significant boost" to global growth in the next two years, Moody's has said. The ratings agency said any boost from cheaper oil would be offset by the eurozone's economic woes as well as slowdowns in China, Japan and Russia. As a result, Moody's said it would not be revising its growth forecasts for the G20 countries. "For the G20 economies, we expect GDP growth of just under 3% each...
  • Justice Department Investigating Moody’s Investors Service

    02/03/2015 5:12:45 AM PST · by HLPhat · 14 replies
    Wall Street Journal ^ | Feb. 1, 2015 8:37 p.m. ET | Timothy W. Martin
    With its case against Standard & Poor’s Ratings Services nearing the finish, the Justice Department has turned its attention to another credit-rating firm under fire for issuing rosy grades on mortgage deals in the buildup to the financial crisis. Justice Department officials in recent months have quietly met with multiple former executives of Moody’s Investors Service to discuss ratings of complex securities before the crisis, according to people familiar with the situation. The Justice Department lawyers probing Moody’s are still in the early stages of their investigation, according to people familiar with the matter. It isn’t yet clear whether it...
  • Japan downgraded by Moody's amid rising fears over debt (from Aa3 to A1)

    12/02/2014 8:02:33 AM PST · by TigerLikesRooster · 6 replies
    BBC ^ | 1 December 2014
    1 December 2014 Last updated at 14:22 Japan downgraded by Moody's amid rising fears over debt Moody's has cut Japan's credit rating by one notch over rising doubts about its ability to reduce debt levels. The decision by the ratings agency sent the yen to a seven-year low against the US dollar. The downgrade comes less than a two weeks before a snap general election called by prime minister Shinzo Abe. His economic stimulus policies and a decision to delay a second sales tax rise will be among the key campaign issues. Tom Byrne, regional credit officer of Moody's, said...
  • Moody’s downgrades Japan credit rating, citing debt

    12/01/2014 5:34:50 AM PST · by WhiskeyX
    Japan Times ^ | Dec 1, 2014 | AFP-JIJI
    Moody’s downgraded Japan’s credit rating Monday, citing “rising uncertainty” over the country’s debt situation and Prime Minister Shinzo Abe’s faltering efforts to kick-start the world’s No. 3 economy. The ratings agency said it cut Japan’s rating by one notch to A1 from Aa3, after the economy sank into recession during the third quarter.
  • Moody's downgrades Japan as concerns grow

    12/01/2014 5:22:21 AM PST · by Enlightened1 · 2 replies
    CNBC ^ | 12/01/14
    Fears over the future of Japan's economy are growing – and Moody's, the credit ratings agency, reflected this on Monday by cutting its credit rating to A1 from AA3. The news came just after the country's main stock market, the Nikkei, closed at a seven-year high.
  • Why Wisconsin won't become Illinois

    09/24/2014 6:07:55 AM PDT · by afraidfortherepublic · 2 replies
    The Washington Examiner ^ | 9-22-14 | Editorial
    Wisconsin Gov. Scott Walker, a Republican, faces a difficult re-election in six weeks. Under normal circumstances, he would probably be coasting to victory. He just beat a recall attempt in 2012, Wisconsin's economy is improving, and he put in place reforms that have already saved the state $3 billion. But of course, this is the issue. His now-famous union bargaining reforms of 2011 have incurred the wrath of America's big labor unions, which are now eager to defeat him. But anyone who doubts the wisdom of Walker's reforms — and the self-interested short-sightedness of the public union bosses — need...
  • Moody's pushes Puerto Rico debt deep into junk status

    07/01/2014 2:58:11 PM PDT · by george76 · 13 replies
    AFP ^ | 01 July 2014
    Ratings company Moody's on Tuesday slashed Puerto Rico's debt rating by three notches into even deeper junk status after the US territory passed a debt-restructuring law. Moody's Investors Service cut the rating to "B2" from "Ba2" and said the outlook was negative, indicating further downgrades were possible. Now dubbed the "Greece of the Caribbean," the archipelago is, like Greece, reeling under massive debt. Over the past decade, the commonwealth's debt has doubled to nearly $70 billion and investors are growing increasingly worried the government is running out of cash. In a bid for debt relief, the Puerto Rican authorities recently...
  • Do We Really Need the Rating Agencies?

    06/16/2014 6:33:34 AM PDT · by SeekAndFind · 3 replies
    RCM ^ | 06/16/2014 | By Desmond Lachman
    One has to be struck by the recent slew of rating agency credit upgrades for European sovereign bonds. Since the start of the year, undaunted by the marked deterioration in European political and economic fundamentals, the rating agencies have sheepishly followed the market's more favorable attitude towards Europe by providing the European countries with improved bond ratings. This has to raise question anew as to whether the rating agencies serve any useful purpose. Similarly it has to raise questions as to whether the rating agencies continue to amplify market movements in a pro-cyclical manner. Since the start of the year,...
  • 3 huge cities flirting with bankruptcy (NYC, Chicago, LA)

    03/03/2014 4:18:34 PM PST · by Libloather · 40 replies
    MSN ^ | 3/03/14 | Karen Riccio
    Detroit's looming bankruptcy is making news again, this time focusing on current restructuring plans aimed to wipe out $18 billion in debt by axing pension checks of city retirees, including police and fire. Massive long-term retirement and healthcare promises were by no means solely responsible for the city's fall, but these massive pensions coupled with a tax base weakened by high unemployment and housing vacancies caused the budget to bleed out quicker. The Michigan city may be the most recent victim of bankruptcy, but many of the 61 largest U.S. cities have adopted the same retirement legacy leading to $118...
  • Moody’s says new Obamacare proposals would hurt insurer ratings

    02/16/2014 9:50:49 AM PST · by SJackson · 9 replies
    Marketwatch ^ | February 13, 2014 | Russ Britt
    <p>A couple of proposed changes to President Obama’s health-care overhaul are drawing the attention of the credit evaluators at Moody’s Investors Service — and not in a good way.</p> <p>In a note to clients Thursday, the ratings agency targeted two proposals: One forcing insurers that offer plans on public exchanges to expand their network of doctors and hospitals, and the other allowing individuals to retain non-compliant insurance policies through the end of 2016.</p>
  • Moody’s downgrades outlook for health insurers

    01/25/2014 10:00:06 AM PST · by jyro · 11 replies
    The Washington Post ^ | Jan. 23 2014 | Sarah Kliff and Sandhya Somashekhar
    Major credit-rating firm Moody’s on Thursday downgraded the outlook for health insurers from stable to negative, citing the new health-care law’s botched rollout as a significant factor. Moody’s highlighted the relatively low sign-up rate among young adults and a slew of last-minute regulatory changes by the Obama administration as posing risks to health insurers selling policies on the new exchanges.
  • Downgraded: Insurance Companies Taste Wrath of ObamaCare

    01/25/2014 7:05:23 AM PST · by gooblah · 11 replies
    Frontpage mag ^ | January 24, 2014 | Arnold Ahlert
    Another day, another dose of bad news for ObamaCare. On Thursday, Moody’s Investor Service announced it was downgrading its outlook for America’s healthcare insurance sector from “stable” to “negative,” due to ObamaCare. “While all of these issues had been on our radar screen as we approached 2014, a new development and a key factor for the change in outlook is the unstable and evolving regulatory environment under which the sector is operating,” Moody’s said. “Notably, new regulations and presidential announcements over the last several months with respect to the ACA have imposed operational changes well after product and pricing decisions...
  • Moody's downgrades health insurers, citing Obamacare Warns of 'unstable and evolving regulatory

    01/23/2014 9:54:29 AM PST · by Nachum · 7 replies
    Moody’s Investor Service has changed its outlook for the U.S. health care insurance sector from stable to negative, citing Obamacare’s rollout and the uncertainty it brings. The private credit rating agency said potential fallout from the Affordable Care Act’s implementation — including changes to the individual market and the impact of the law’s “employer mandate” on commercial group plans in January 2015 — presents the greatest challenge to health insurers’ credit profile. Lower reimbursement rates among Medicare Advantage plans also are creating financial pressure, it said.
  • Moody’s downgrades health insurers over ObamaCare uncertainty

    01/23/2014 8:21:13 AM PST · by Cincinatus' Wife · 7 replies
    The Hill ^ | January 23, 2014 | Jonathan Easley
    Moody’s announced Thursday it was downgrading its outlook for health insurers from stable to negative based on uncertainty related to ObamaCare. The credit rating agency cited an unstable environment because of the healthcare law’s difficult rollout, and projected that insurers would earn two percent less than forecast in 2014. “While we’ve had industry risks from regulatory changes on our radar for a while, the ongoing unstable and evolving environment is a key factor for our outlook change,” Moody’s Senior Vice President Stephen Zaharuk said in a statement. “The past few months have seen new regulations and announcements that impose operational...
  • Moody’s warns of bankruptcy in Scranton as city faces $20 million budget gap ( Penna )

    11/11/2013 3:08:11 PM PST · by george76 · 13 replies
    PA Independent ^ | November 11, 2013 | Eric Boehm
    Scranton could be headed towards another fiscal crisis like the one that resulted in city workers having their pay cut to minimum wage in 2012... Moody’s warned investors that Scranton could be facing the threat of default or bankruptcy thanks to a $20 million budget gap for the fiscal year that begins Jan. 1. The city is supposed to approve a new budget by Nov. 15, which would have to close that deficit to balance the budget. ... A similar crisis hit the city in July 2012, which lead to Mayor Chris Doherty cutting all city workers’ pay to minimum...
  • Why Does Obama Want To End Sequestration When It Was His & Lew's Idea? (According To Woodward

    10/13/2013 11:43:41 AM PDT · by Laissez-faire capitalist · 12 replies
    10/13/2013 | Laissez-Faire Capitalist
    Bob Woodward said that sequestration was Obama's & Lew's idea. Why now is Obama againt it? Why was he for it before he was against it? Why does he flip-flop on his CORE beliefs (raising the debt ceiling, the individual mandate, sequestration, etc)? Not secondary or tertiary beliefs...core beliefs. And why is Lew fearmongering over the debt ceiling? What he has said about it recently has been debunked by Moody's.
  • Live updates: the shutdown--Moody's offers different view on debt limit

    10/09/2013 1:42:44 PM PDT · by RKBA Democrat · 24 replies
    Washington Post Blog ^ | 10-9-13 | Lori Montgomery
    <p>One of the nation’s top credit-rating agencies says that the U.S. Treasury Department is likely to continue paying interest on the government’s debt even if Congress fails to lift the limit on borrowing next week, preserving the nation’s sterling AAA credit rating.</p>
  • Public Pensions After Detroit

    08/03/2013 4:16:02 PM PDT · by Libloather · 14 replies
    NY Times ^ | 8/03/13
    Detroit’s bankruptcy and the problems facing its pension funds offer two important lessons to other communities. One is that state and local governments need to do a much better job managing retirement funds. The other is that they should not pre-emptively reduce hard-earned benefits at the first sign of trouble. Several state and local pension systems around the country are under serious stress. Not surprisingly the hardest hit retirement funds are in places devastated by global economic forces like Detroit, as well as inland cities in California like Stockton, which was battered by the real estate collapse and has also...
  • Broke? Chicago School Budget Would Increase Spending By Nearly 10%!

    07/26/2013 4:22:15 PM PDT · by Kaslin ^ | July 26, 2013 | Kyle Olson
    For all of the panicky rhetoric coming out of Chicago, one would think the school district is on the verge of financial collapse. Indeed, the Chicago Tribune recently published an editorial announcing that the financial emergency for CPS has arrived. That may very well be, but one would never know it from the proposed increase in spending of nearly 10 percent. Chicago Public Schools recently released a proposed budget of $5.6 billion for the 2013-14 school year. That’s up from $5.1 billion the previous year. The dramatic increase in spending is largely due to a $405 million employee pension payment...
  • Moody’s considers Cyprus to have defaulted after bond swap

    07/03/2013 6:58:09 PM PDT · by dynachrome ^ | 7-4-13 | ekathimerin
    Moody’s Investors Service late on Monday said that it considers Cyprus to have defaulted after the debt-stricken island country swapped some local bonds for longer-term bonds. The ratings agency, which does not use a “default” or “selective default” rating, said it will revisit Cyprus’s rating to assess the impact of the exchange on the sustainability of the nation’s debt burden. Other factors, including the likelihood that Cyprus will comply with the rest of the measures spelled out in its bailout agreement with the International Monetary Fund, the European Central Bank and the European Union, will be taken into consideration as...
  • US States need $980 BILLION to fill pension gap, says Moody’s

    06/30/2013 7:03:17 AM PDT · by Lorianne · 14 replies
    Financial Times ^ | 27 June 2013 | Norma Cohen
    High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email to buy additional rights. US states would need to raise $980bn to cover the aggregate shortfalls in their retirement schemes for public sector workers, according to an analysis of state obligations. Moody’s Investors Service, which provides credit ratings for states and municipalities, looked at the detailed financial accounts for each state and its schemes in the most recent financial year available. If all 50 states...
  • Ratings Service Moody’s Finds Pension Shortfall

    06/29/2013 4:28:57 AM PDT · by SeekAndFind · 6 replies
    New York Times ^ | 06/27/2013 | MARY WILLIAMS WALSH
    Moody’s Investors Service, dissatisfied with the way states measure what they owe their retirees, released its own numbers on Thursday, showing that the 50 states have, in aggregate, just 48 cents for every dollar in pensions they have promised. That is much less than the 74 cents on the dollar that the states now report, suggesting the states are short by about $980 billion, with many local governments, like school districts, being on the hook for additional billions that they have not disclosed at all. The disparity suggests that politically difficult steps taken recently by many states to fix their...
  • The Last Mystery of the Financial Crisis

    06/21/2013 11:28:11 AM PDT · by posterchild · 11 replies
    Rolling Stone via ^ | Fri June 21, 2013 | Matt Taibbi
    What about the ratings agencies? That's what "they" always say about the financial crisis and the teeming rat's nest of corruption it left behind. Everybody else got plenty of blame: the greed-fattened banks, the sleeping regulators, the unscrupulous mortgage hucksters like spray-tanned Countrywide ex-CEO Angelo Mozilo. But what about the ratings agencies? Isn't it true that almost none of the fraud that's swallowed Wall Street in the past decade could have taken place without companies like Moody's and Standard & Poor's rubber-stamping it? Aren't they guilty, too? Man, are they ever. And a lot more than even the least generous...
  • Rajaratnam Surfaced in U.S. Terrorism Probe [Funded DNC, 0, and Hillary!]

    10/17/2009 8:11:30 PM PDT · by Steelfish · 16 replies · 1,516+ views
    Wall St. Journal ^ | October 17th 2009
    OCTOBER 17, 2009 Rajaratnam Surfaced in U.S. Terrorism Probe By EVAN PEREZ and MATTHEW ROSENBERG WASHINGTON—The hedge-fund billionaire charged as part of a vast insider-trading case surfaced in an earlier, separate probe into U.S. fundraising by a Sri Lankan terrorist group, people familiar with the probe said. As part of that investigation, federal agents said they uncovered documents showing that Raj Rajaratnam, founder of the Galleon Group, was among several wealthy Sri Lankans in the U.S. whose donations to a Maryland-based charity made their way to the Liberation Tigers of Tamil Eelam, according to people familiar with the probe. Raj...
  • UK Downgrade Leads to a LOWER Yield Curve and CDS Prices

    03/04/2013 4:18:23 PM PST · by whitedog57 · 1 replies
    Confounded Interest ^ | 03/04/2013 | Anthony B. Sanders
    Yes, on February 22nd Moody’s lowered the bond rating for UK debt from AAA to Aa1. The result between February 22nd and today? The yield curve for UK sovereign bonds has fallen. I compare the US Treasury yield curve over the same time period with the UK Sovereign curve. The US yield curve shows a much smaller decline which, of course, was not downgraded. Yet. The UK 5 year credit default swaps (CDS) has fallen from 51 on February 21st to 47.30 on March 1st. If you look at the time distribution of UK sovereign debt, they have a big...
  • Moody's cuts UK credit rating one notch to Aa1

    02/22/2013 3:21:42 PM PST · by SeekAndFind · 2 replies
    Yahoo finance ^ | 02/22/2013
    NEW YORK (Reuters) - Moody's Investors Service on Friday cut the United Kingdom's credit rating to Aa1 from Aaa, citing weakness in the nation's medium-term growth outlook that it now expects to extend for a number of years. The outlook on the credit is stable, the firm said in a statement.
  • Payback for a Downgrade? (The Feds sue S&P but not Moody's for pre-crisis credit ratings)

    02/06/2013 6:59:20 AM PST · by SeekAndFind · 13 replies
    Now, this is awkward. One agency of the federal government is suing a company for fraud while another agency continues to endorse it. On Monday in Los Angeles, the Department of Justice sued Standard & Poor's and its parent McGraw-Hill MHP -0.25% for $5 billion. The claim is that S&P committed civil fraud when it issued high credit ratings on mortgage-related securities prior to the financial crisis of 2008. Sixteen states and the District of Columbia have piled on the suit. No doubt investors who relied on the opinions of S&P and the other big credit-rating agencies, Moody's and Fitch,...
  • Moody's strips France of triple-A rating; a notch lower (Aa1)

    11/19/2012 5:27:01 PM PST · by TigerLikesRooster · 10 replies
    Reuters ^ | Nov 19, 2012
    Moody's strips France of triple-A rating; a notch lower Mon Nov 19, 2012 6:05pm EST (Reuters) - Moody's Investors Service downgraded France's sovereign rating by one notch to Aa1 from Aaa, the agency said on Monday, citing the country's uncertain fiscal outlook as a result of "deteriorating economic prospects." Moody's said it is maintaining a negative outlook on the country due to structural challenges and a "sustained loss of competitiveness" in the country. Standard & Poor's has a AA-plus rating and negative outlook on France, which it downgraded by one notch in January from AAA. Fitch Ratings has France at...
  • Economists: Romney's 12 Million Jobs Target Realistic, Even If He Loses (Framing His Presidency)

    10/31/2012 8:38:43 AM PDT · by Frapster · 3 replies
    NPR ^ | October 26, 2012 3:00 PM | Tamara Keith
    As the election draws closer, the economy and jobs remain top issues in the presidential race. President Obama points to the improvement in the labor market since he took office in the midst of a downward spiral. Both he and Republican presidential nominee Mitt Romney have five-point plans for improving the economy, although their strategies differ.
  • New Contract Earns Chicago Schools 2nd Credit Downgrade – In One Quarter

    09/29/2012 7:29:35 AM PDT · by Kaslin · 4 replies ^ | September 29, 2012 | Kyle Olson
    Sound financial management clearly wasn’t a concern to any party involved in the recent contract negotiations in Chicago Public Schools. They were warned that new labor expenses might result in a credit downgrade for the financially-strapped school district, and they chose to ignore it. Now it has comes to pass. The credit rating agency Moody’s has downgraded the school district for the second time in one quarter. Moody’s wrote: “The negative outlook reflects the school district's budgeted depletion of reserves to fund ongoing operations in fiscal 2013; the moderate additional unbudgeted salary costs of labor contract negotiations, which have not...
  • Moody’s Text: To Downgrade US If No Deal To Cut Debt/GDP Ratio

    09/11/2012 9:54:40 AM PDT · by RoosterRedux · 6 replies
    forexlive.como ^ | 9/11/2012 | Market News International
    The following is the text of a statement Tuesday by rating agency Moody’s: Budget negotiations during the 2013 Congressional legislative session will likely determine the direction of the US government’s Aaa rating and negative outlook, says Moody’s Investors Service in the report “Update of the Outlook for the US Government Debt Rating.” If those negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term, the rating will likely be affirmed and the outlook returned to stable, says Moody’s. If those negotiations fail to produce such...

    09/11/2012 6:49:26 AM PDT · by blam · 12 replies
    TBI ^ | 9-11-2012 | Sam Ro
    MOODY'S THREATENS TO CUT USA RATING WITHOUT DEAL TO CUT DEBT/GDP Sam RoSeptember 11, 2012Moody's is warning that it may cut the US government's credit rating from the Aaa to Aa1 if it is unable to negotiate a deal to materially reduce its federal debt to GDP ratio. Here's the annoucnement from Moody's: ------------------- Moody's issues update on the outlook for the US government's debt rating: Budget negotiations key Global Credit Research - 11 Sep 2012 New York, September 11, 2012 -- Budget negotiations during the 2013 Congressional legislative session will likely determine the direction of the US government's Aaa...
  • U.S. pension holdings rival richest nations’ GDP

    08/10/2012 6:38:40 AM PDT · by afraidfortherepublic · 7 replies
    The Wisconsin Reporter ^ | 8-10-12 | M. D. Kittle
    MADISON – The combined assets of U.S. state-administered public pension systems are approaching the Gross Domestic Product of the United Kingdom – cost of the Olympics not included. And potential liabilities of the financially troubled system is nearly that of the GDPs of Russia and Canada combined. The 222 state-administered defined benefit retirement plans totaled $2.5 trillion in cash and investment holdings in 2011, a 14.6 percent increase from $2.2 trillion in 2010, according to new statistics from the U.S. Census Bureau. By comparison, the United Kingdom posted $2.417 trillion in nominal gross domestic product in 2011, the sixth largest...
  • Stocks fall off a cliff as Moody's downgrades 15 international banks

    06/22/2012 6:37:17 AM PDT · by SeekAndFind · 13 replies
    American Thinker ^ | 06/22/2012 | Rick Moran
    Moody's Investor Service cut the credit rating of the 6 largest US banks with international arms. In anticipation of this, and on general economic jitters, stocks tanked 251 points in the second worst day of trading this year. The downgrade of US banks reflects growing concern about the global economy and the exposore of US companies to the european debt crisis. Wall Street Journal: The Moody's Corp. unit reduced Morgan Stanley's rating to Baa1, which is three notches above the junk, or noninvestment grade, status that many bond buyers avoid. The move stands to add to the company's borrowing costs...
  • Here Are the U.S. Bank Downgrades: Morgan Stanley Gets 2 Notches.

    06/21/2012 2:54:17 PM PDT · by scooby321 · 10 replies
    Wall Street Journal ^ | 6/12/12 | WSJ Staff
    The markets have been awaiting this day since Moody’s put under review for a downgrade the credit ratings for 17 large global banks back in February, including five of the biggest U.S. financial firms by assets. The downgrades are expected to raise borrowing costs and crimp some lucrative trading businesses at the banks, including at J.P. Morgan, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley.

    06/21/2012 1:32:22 PM PDT · by SeekAndFind · 44 replies
    Business Insider ^ | 06/21/2012 | Eric Platt
    Moody's Ratings is set to downgrade the world's largest banks at 4 p.m., according to new reports out of CNBC. The network says sources tell it Citi, J.P. Morgan Chase, and Goldman Sachs will be hit with two notch downgrades. Bank of America is expected to be cut one notch by Moody's. Morgan Stanley, which is also on the list of banks Moody's said it would take action against, is said to be downgraded as well. Nine European banks are expected to be included in the downgrade, which earlier reports noted would include Barclay's, UBS, HSBC, Lloyd's, and RBS.
  • Euro-zone Crisis Will Hit Russia Hard

    05/28/2012 10:15:59 AM PDT · by blam · 9 replies
    TMO ^ | 5-28-2012<b> | Pravda
    Euro-zone Crisis Will Hit Russia Hard Economics / Russia May 28, 2012 - 07:38 AM By: Pravda The political collapse in Greece and Moody's downgrade of the rankings of 16 Spanish banks at once have led to the decline in stock indexes all over the world. In Russia, the head of the Central Bank, Sergei Ignatiev, showed an optimistic reaction to such unpleasant news. Making a speech at the government last week, the official urged everyone not to panic. According to him, Russia is prepared to the crisis much better than it was four years ago. Economists say, though, that...
  • Moody's Warns 17 Banks of Downgrade — Credit Suisse, UBS And Morgan Stanley Could Fall 3 Levels

    02/16/2012 9:04:45 AM PST · by SeekAndFind · 5 replies
    Business Insider ^ | 02/16/2012 | Sam Ro
    Moody's announced that it may soon downgrade the long-term credit ratings of 17 of the largest banks in the world. "Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions," wrote the credit ratings agency in a statement. "These difficulties, together with inherent vulnerabilities such as confidence-sensitivity, interconnectedness, and opacity of risk, have diminished the longer term profitability and growth prospects of these firms." Credit Suisse, Morgan Stanley and UBS could be downgraded by up to three notches. Barclays, BNP Paribas, Citigroup, Credit Agricole, Deutsche Bank,...
  • Moody's Downgrades Italy, Spain, Portugal And Others; Puts UK, France On Outlook Negative

    02/13/2012 3:27:34 PM PST · by SeekAndFind · 10 replies
    Zero Hedge ^ | 02/13/2012 | Tyler Durden
    You know there is a reason why Europe just came crawling with an advance handout looking for US assistance: Moody's jsut went apeshit on Europe. In other news, we wouldn't want to be the company that insured Moody's Milan offices.Full release:Moody's adjusts ratings of 9 European sovereigns to capture downside risksAs anticipated in November 2011, Moody's Investors Service has today adjusted the sovereign debt ratings of selected EU countries in order to reflect their susceptibility to the growing financial and macroeconomic risks emanating from the euro area crisis and how these risks exacerbate the affected countries' own specific challenges.Moody's...
  • Moody's adjusts ratings of 9 European sovereigns to capture downside risks (negative on 9!)

    02/13/2012 3:27:17 PM PST · by dynachrome · 8 replies · 1+ views ^ | 2-13-12 | Moodys
    Moody's actions can be summarised as follows: - Austria: outlook on Aaa rating changed to negative - France: outlook on Aaa rating changed to negative - Italy: downgraded to A3 from A2, negative outlook - Malta: downgraded to A3 from A2, negative outlook - Portugal: downgraded to Ba3 from Ba2, negative outlook - Slovakia: downgraded to A2 from A1, negative outlook - Slovenia: downgraded to A2 from A1, negative outlook - Spain: downgraded to A3 from A1, negative outlook - United Kingdom: outlook on Aaa rating changed to negative Please see the individual country specific statements below for more detailed...
  • Gasparino Goes After Warren Buffet on Fox Business Today

    01/31/2012 10:57:31 AM PST · by RinaseaofDs · 22 replies
    Fox Business Channel | 1/31/2012 | Charlie Gasparino
    Gasparino actually said in plain English: 1. The 2008 Real Estate Bubble was caused in large part by the three ratings agencies 2. That Warren Buffet had ownership of Moody's and made millions at the time. 3. That the Lubrizol purchase was a continuation of a trend that Buffet has shown toward these sorts of ethical lapses in very large, economy moving transactions. So far, this is the very first time that anyone in the MSM has uttered such things, and the last place I thought I'd see it was on a Fox channel. Kudos to Gasparino for actually reporting...
  • Illinois gets downgraded by Moody’s (Lower than similarly Democrat run California)

    01/20/2012 12:25:47 PM PST · by SeekAndFind · 22 replies
    Hotair ^ | 01/20/2012 | Ed Morrissey
    Say, remember when the state of Illinois took the Democratic approach to fixing their budget woes by raising taxes? The debt problems of the Land of Lincoln would disappear, Governor Pat Quinn argued, if the state hiked corporate and personal income tax rates by as much as two-thirds. The extra revenue would stabilize the state’s fiscal footing and pull them from the brink of financial disaster.How well did that work out? As the Wall Street Journal reports today, Illinois debt has now been downgraded to the lowest rating of all 50 states by Moody’s: Though too few noticed, this month...
  • Britain blames euro for triple-A warning

    12/21/2011 12:59:17 AM PST · by Olog-hai · 2 replies
    EU Observer ^ | 21.12.2011 @ 09:26 | Andrew Rettman
    The British government has blamed the euro for ratings agency worries on its triple-A status amid a widening political gap between Brussels and London. A UK treasury spokesman told newswires on Tuesday (20 December) that exposure to the eurozone is the main reason why Moody's earlier the same day warned that Britain's top-level grade faces "formidable and rising challenges." The spokesman said: "The UK is not immune to the problems facing our trading partners in the euro area; the crisis is having a chilling effect across Europe and it is important that the euro area continues to take decisive action...
  • All EU ratings threatened by crisis: Moody's

    11/28/2011 12:48:58 AM PST · by TigerLikesRooster · 10 replies
    AFP ^ | 11/27/11
    All EU ratings threatened by crisis: Moody's US rating agency Moody's warned Monday that all European Union sovereign ratings were threatened by the current financial crisis. "The continued rapid escalation of the euro area sovereign and banking credit crisis is threatening the credit standing of all European sovereigns," the agency said in a new special comment. Moody's said that "in the absence of policy measures that stabilise market conditions over the short term, or those conditions stabilising for any other reason, credit risk will continue to rise." Greece, Ireland and Portugal all suffered rating downgrades that accelerated unsustainable rises in...
  • Moody's To US: Don't Skimp On Deficit Cuts, Or Else [Iceberg Ahead?]

    11/23/2011 9:39:47 PM PST · by Steelfish · 14 replies
    MSNBC ^ | November 23, 2011
    Moody's To US: Don't Skimp On Deficit Cuts, Or Else By Reuters Moody's Investors Service Wednesday warned that its top credit rating for the United States could be in jeopardy if lawmakers backtrack on $1.2 trillion in deficit cuts planned over 10 years. The ratings firm said the failure of a U.S. congressional committee to reach an agreement on deficit reduction did not affect the Aaa rating, but any pullback from agreed automatic cuts to take effect starting in 2013 could prompt it to take action. "While a change in the composition of the spending cuts would not be a...
  • Moody's Just Made 16 More Huge Downgrades In Spain

    10/19/2011 2:28:10 PM PDT · by blam · 8 replies
    TBI ^ | 10-19-2011 | Simone Foxman
    Moody's Just Made 16 More Huge Downgrades In Spain Simone Foxman Oct. 19, 2011, 4:51 PM Moody's Investors Service downgraded nine Spanish regions, two Basque provinces, and five government-related entities, a day after it downgraded Spanish sovereign debt. That included demoting one region — Castilla-La Mancha — by five notches, from A3 to Ba2. It also remains on downgrade review. This newest report confirms that the gravity of the debt crisis is deepening in Spain, one of the countries most vulnerable to banking contagion. Here's the full release from Moody's. --- Madrid, October 19, 2011 -- Moody's Investors Service has...
  • Moody's cuts Spain by 2 notches, sees funding risks

    10/18/2011 3:45:31 PM PDT · by TigerLikesRooster · 6 replies
    Reuters ^ | 10/18/11 | Walter Brandimarte
    Moody's cuts Spain by 2 notches, sees funding risks By Walter Brandimarte NEW YORK | Tue Oct 18, 2011 6:19pm EDT (Reuters) - Moody's Investors Service on Tuesday cut Spain's sovereign ratings by two notches, saying high levels of debt in the banking and corporate sectors leave the country vulnerable to funding stress. Worsening growth prospects for the euro zone will also make it more challenging for Spain to reach its ambitious fiscal targets, the ratings agency added. Spain could be downgraded again if the euro zone debt crisis escalates further, Moody's warned. "Since placing Spain's ratings under review in...
  • Moody’s Downgrades Italy By Three Notches

    10/04/2011 6:53:06 PM PDT · by TigerLikesRooster · 26 replies
    WSJ ^ | 10/04/11
    Moody’s Downgrades Italy By Three Notches /snip Here’s the Moody’s report: Moody’s Investors Service has today downgraded Italy’s government bond ratings to A2 with a negative outlook from Aa2, while affirming its short-term ratings at Prime-1. The rating action concludes the review for downgrade initiated by Moody’s on 17 June, 2011. The main drivers that prompted the rating downgrade are: (1) The material increase in long-term funding risks for euro area sovereigns with high levels of public debt, such as Italy, as a result of the sustained and non-cyclical erosion of confidence in the wholesale finance environment for euro sovereigns,...