Moody S Investors Service | InvestmentWatch

Moody’s Cuts Country Ceilings On Cyprus

Moody’s cuts country ceilings on Cyprus

“Moody’s Investors Service late Wednesday cut its assessment of the highest rating it can assign to a domestic debt issuer in Cyprus to Caa2, saying the move stems from increased risk the financially troubled country will exit as a member of the euro zone. Moody’s said any rating actions taken as a result of the new country ceiling will be released during the coming week. [...]

Renewed Signs of Europe’s Economic Weakness

JAMES KANTER
nytimes.com
February 22, 2013

Despite growing confidence that Europe is managing its debt crisis and is poised to embark on a recovery, fresh developments on Friday indicated that the region continues to struggle to stimulate growth while cutting spending to pare deficits.

A top European official warned on Friday that the euro area economy would shrink for the second consecutive year and that countries like France and Spain would miss fiscal targets [...]

Fiscal cliff deal sends stocks into biggest rally in a year… but U.S. is warned it may STILL lose AAA credit rating

The ‘fiscal cliff’ compromise, even with all its chaos, controversy and unresolved questions, was enough to ignite the stock market on Wednesday, the first trading day of the new year.

The Dow Jones industrial average careened more than 300 points higher, its biggest gain since December 2011. It’s now just 5 percent below its record high close reached in October 2007. The Russell 2000, an index that tracks smaller companies, shot [...]

Europe Is Heading Into A Full-Blown Depression, It’s Entire Financial System Could Literally Fall Apart At Any Moment, And It Will End Up Dragging The Entire Globe Down With It.

from KWN:

Fasten your seat belts, here is what Egon von Greyerz, founder of Matterhorn Asset Management in Switzerland, had this to say: “Eric, I’m looking around the world and what is happening in France is quite amazing. We all know Hollande is in charge and he is now threatening French steel producer ArcelorMittal. Business is weak and they are looking to lay off some employees.”

Egon von Greyerz continues:

“ArcelorMittal is the biggest [...]

Bad News For Spain: Moody’s Slashes 5 Spanish Regions

Moody’s just downgraded the credit ratings of five Spanish regions and confirmed current ratings on five others.

The downgrade comes on the heels of regional elections in Spain. The outcomes today were seen as favorable for Spanish PM Mariano Rajoy’s ruling government.

Catalunya, one of the regions downgraded by Moody’s and perhaps Spain’s most economically important region, doesn’t hold elections until late November.

There are fears that Catalunyans, who like to distinguish between themselves [...]

Spain: The ECB’s Plan May Not Be Enough

Mario Draghi’s plan to save the euro is about to get a test run. Spanish Prime Minister Mariano Rajoy appears ready to accept—perhaps not immediately, but soon—the European Central Bank president’s offer of a deal, in which the bank would buy up Spanish government debt in exchange for promised austerity and economic reforms. Investors seem persuaded that a bailout is at hand: The returns they’re demanding on Spanish bonds have [...]

Spain’s banks face a capital shortfall that could climb to $135 billion, almost double government estimates: Moodys

Spain’s banks face a capital shortfall that could climb to 105 billion euros ($135 billion), almost double the estimate the government provided last week, according to Moody’s Investors Service.

The nation’s lenders may need infusions of 70 billion euros to 105 billion euros to absorb losses and still keep capital ratios above thresholds outlined in legislation last year, Moody’s analysts wrote yesterday in a report. That compares with the 53.7 billion euro shortfall found [...]

Markets await Moody’s review of Spanish debt! EU MARKETS NEGATIVE, RATES RISING FAST!

MADRID (MarketWatch) — The Moody’s Investors Service review of Spanish sovereign debt could come as soon as the close of Europe or U.S. markets Friday, say analysts. Moody’s said in August its review on Spain’s Baa3 rating would continue through the end of September, which is this Sunday. At the time it also said it was waiting on more information on recapitalization needs of Spanish banks, which is coming at [...]

Moody’s: More California cities at risk of bankruptcy–Credit agency sees greater chance of municipal bankruptcies, bond defaults in California

SACRAMENTO, Calif. (AP) — One of the nation’s top credit rating agencies said Friday that it expects more municipal bankruptcies and defaults in California, the nation’s largest issuer of municipal bonds.

Moody’s Investors Service said in a report that the growing fiscal distress in many California cities was putting bondholders at risk.

The service announced that it will undertake a wide-ranging review of municipal finances in the nation’s most populous state because [...]

Moody’s: More Calif. Cities At Risk Of Bankruptcy

Moody’s: More Calif. cities at risk of bankruptcy

“One of the nation’s top credit rating agencies will begin a wide-ranging review of municipal finances in California because of what it sees is a growing threat of increased city bankruptcies and bond defaults.

Moody’s Investors Service issued a report Friday saying that the growing fiscal distress in many cities in the nation’s most populous state was putting bond holders at risk.

It noted that [...]

Moody’s Investors Service to review, possibly downgrade, Penn State bond rating

The Jerry Sandusky child sex abuse scandal and aftermath could mean a drop in Penn State’s bond ratings.

Moody’s Investors Service announced today that it has put Penn State’s bond rating on review for a potential downgrade. The review affects the university’s Aa1 rating and applies to about $1 billion in debt.

According to an announcement from Moody’s, the potential change stems from recent events including the Freeh report, the NCAA sanctions [...]

CARSH doom is on! Moody’s: “GERMANY OUTLOOK NEGATIVE” ( bond speculators in full panic since “safe haven” Germany is doomed to downgrades

Moody’s put negative outlook on Germany: the full text

Moody’s Investors Service has today revised to negative from stable the outlooks on the Aaa sovereign ratings of Germany, the Netherlands and Luxembourg. In addition, Moody’s has also affirmed Finland’s Aaa rating and stable outlook.

All four sovereigns are adversely affected by the following two euro-area-wide developments:

1) The rising uncertainty regarding the outcome of the euro area debt crisis given the current policy [...]

Moody’s Cuts Compton, Calif. Sewer Enterprise Rev Bond Rating

Moody’s cuts Compton, Calif. sewer enterprise rev bond rating

“Moody’s Investors Service said on Monday it cut the rating on sewer enterprise revenue bonds issued by Compton, California, to Ba1 from A2, affecting $4.9 million of debt.

The rating could be cut further into the junk category, the rating agency said in a statement.

The downgrade is primarily based on the city’s severe liquidity crisis, which raises the risk that the city could [...]

MOODY’S Cuts Outlook on Germany, Two Others

Moody’s Investors Service on Monday changed its outlook for top-rated Germany, the Netherlands and Luxembourg to negative from stable, warning that they may have to increase support for indebted euro zone states such as Spain and Italy.

Moody’s also cited an increased chance of Greece leaving the euro zone, which “would set off a chain of financial sector shocks … that policymakers could only contain at a very high cost.”

The agency [...]

U.S. Public-Pension Shortfall $4.6 Trillion, Group Says

U.S. public pensions are $4.6 trillion short of the amount of assets needed to cover projected liabilities, an advocacy group said. That’s more than twice what Moody’s Investors Service estimated this month.

The average plan is 41 percent funded, State Budget Solutions said in a report today. The Alexandria, Virginia, group’s partners include the American Legislative Exchange Council, which advocates “conservative public policy solutions,” the Freedom Foundation and the State Policy [...]

Moody’s downgrades 23 Italian sub-sovereign entities, including regional and local governments following sovereign downgrade

Milan, July 16, 2012 — Moody’s Investors Service has today downgraded the long-term issuer and debt ratings of 23 Italian sub-sovereign entities, including regional and local governments (RLGs) as well as two associated entities. The downgrades were prompted by the weakening of the Italian government’s credit profile, as captured by Moody’s recent downgrade of Italy’s government bond rating to Baa2 from A3. For full details please refer to the Sovereign [...]

Moody’s cuts ratings on 6 Mexican banks

NEW YORK (MarketWatch) — Moody’s Investors Service on Thursday lowered the stand-alone financial-strength ratings or the standalone credit assessments of six Mexican banks by one to two notches. Ratings of Banco Nacional de Mexico, Banco Santander (Mexico), and BBVA Bancomer were cut to the level of Mexico’s Baa1 sovereign debt rating. The move reflects Moody’s view that the banks’ creditworthiness is strongly correlated with the credit strength of the Mexican [...]

WARNING: Moody’s is about to junk virtually the entire Spanish banking sector TODAY, The downgrade is expected to happen within hours

From Expansion (google translated)

“After cutting the rating of Baa3 and Spain to threaten to put Spanish debt at the level of junk bond no later than 30 days, has reviewed the notes of all banks. “We have reported a reduction of two or three notches (steps) to almost everyone. Do not look at individual financial statements of each entity. Do not discriminate, “added the sources.

And is that the sector is particularly annoying because [...]

WSJ: Moody’s bank downgrades “can help Americans understand” the failures of Dodd-Frank

via WSJ:

We’ve never put much stock in the judgment of credit-ratings agencies. But by issuing a series of downgrades of giant banks this week, Moody’s Investors Service may have performed a taxpayer service. Two years ago President Obama and Congressional Democrats told Americans they had strengthened the banking system and revoked too-big-to-fail privileges from the financial giants. Now Moody’s can help Americans understand that the 2010 Dodd-Frank law has fulfilled [...]

MOODY’S DOWNGRADES 15 BANKS

NEW YORK (AP) — Moody’s Investors Service has lowered the ratings of some of the world’s largest banks, including Bank of America, JPMorgan Chase, Citigroup and Goldman Sachs.

The ratings agency said late Thursday that the banks were downgraded because their long-term prospects for profitability and growth are shrinking.

Source: AP

Below, a summary of the major ratings action taken.

Cut One Notch:

HSBC downgraded to Aa3 from Aa2
Lloyds TSB downgraded to A2 from A1
RBS [...]

EU Alert — Moody’s Downgrades Dutch Banking Groups

Moody’s has cut the ratings of 11 European banks and said it would cut again if Greece ditched the euro, kicking off a long-awaited round of downgrades for major European institutions.

Moody’s Investors Service said on Friday it had taken action against five Dutch banking groups, three French banks and one each from Belgium and Luxembourg.

Investors shrugged off the news after central banks from major economies had indicated they were prepared [...]

WSJ: The world’s 17 largest banks to be DOWNGRADED!

Banks, bond issuers and investors are bracing for aftershocks from a wave of bank downgrades expected to hit the U.S. as soon as the coming week.

Moody’s Investors Service has said it is likely to reduce by the end of June credit ratings for 17 large global banks, including five of the six biggest U.S. financial firms by assets. The downgrades are expected to raise borrowing costs and crimp some lucrative [...]

SHOCK: Spain House Prices May Fall 52% in Economic Stress, Moody’s Says

Spanish house prices may decline as much as 52 percent in a period of economic stress, according to Moody’s Investors Service.

The forecast decline is based on a model combining factors such as homes price increases in the last 10 years and unemployment rates, analysts including London-based Nitesh Shah said in a June 6 note. U.K. home prices are the second most at risk in Europe, facing the prospect of a 42 percent [...]

Moody’s downgrades Emporiki and Geniki Bank; outlooks negative

Limassol, June 05, 2012 — Moody’s Investors Service has today downgraded the deposit and debt ratings of Emporiki Bank of Greece S.A. (Emporiki) and General Bank of Greece (Geniki) to Caa2 from B3, with a negative outlook, reflecting risks emanating from the increasing probability of Greece exiting the euro area, as outlined in the special comment “Greek country ceiling reflects heightened risk of euro area exit” published on June 1, [...]

RED ALERT DEFCON 1: Futures DOWN, Moody’s Downgrades Danske, Eight Other Danish Financial Firms, Busiest 48 Hours In The History Of Economics. CARSH is Nigh!!!

Tonight begins what we suspect will be the busiest 48 hours in the history of economics.

Thanks to the shortened week, and just generally the scheduling of events, what starts tonight is going to be epic.

We’re just going to run through all the data and events, which start tonight.

Read more: http://www.businessinsider.com/the-busiest-36-hours-in-the-history-of-economics-2012-5#ixzz1wPGj0ayJ

Futures Down

http://www.bloomberg.com/markets/stocks/futures/

Moody’s Downgrades Danske, Eight Other Danish Financial Firms

Moody’s Investors Service downgraded the ratings of nine Danish financial institutions, including the country’s [...]

Time To Load Up On Denmark CDS – Moody’s Cuts Nine Danish Financial Institutions: Luxor Thesis In Play

Last time we looked at Denmark it it was in the context of Luxor Capital which had some very ugly things to say about the Scandinavian country in “Rotten Contagion To Make Landfall In Denmark: CDS Set To Soar As Hedge Funds Target Country.” Now, 6 months later, Moody’s has finally gotten the memo: “Moody’s Investors Service has today downgraded the ratings for nine Danish financial institutions and for one foreign [...]

Moody’s downgrades Spanish banks including the 6th largest company in the world, Santander:

Moody’s Investors Service has today downgraded by one to three notches the long-term debt and deposit ratings for 16 Spanish banks and Santander UK PLC, a UK-domiciled subsidiary of Banco Santander (Spain) SA. The rating downgrades primarily reflect the concurrent downgrades of most of these banks’ standalone credit assessments, and in five cases also Moody’s assessment that the Spanish government’s ability to provide support to the banks has reduced.

Moody’s Investors [...]

UPDATE: Moody’s Warns Of More Vulnerabilities At Spanish Banks

– Losses in mortgages, corporate loans not addressed with new provisioning rules, Moody’s says

– Banks detail impact of new provisioning rules, with Bankia, Popular among the most hit

– ECB bank borrowing data, weak T-bill auction adds to worries

– Stocks fall sharply, led by banks, while bond yields rise

(Adds result of T-bill auction, analyst comment and market reaction from paragraph 6.)

MADRID (Dow Jones)–Spanish banks will remain vulnerable to rising loan delinquencies [...]

Bloomberg: “Moody’s Said to Delay Bank Downgrades Amid Crisis, JPMorgan Loss”

Moody’s Investors Service is delaying ratings downgrades on more than 100 banks as it assesses the effect of JPMorgan (JPM) Chase & Co.’s trading losses and a greater possibility of a euro breakup, a Moody’s official said.

The Moody’s official declined to be identified as he wasn’t authorized to comment publicly. Moody’s said on April 13 that it would begin downgrading banks, including BNP Paribas SA (BNP), France’s biggest lender, Germany’s Deutsche Bank AG (DBK) and New York-based JPMorgan and Morgan [...]

Morgan Stanley Weighs Derivative Options As It Awaits Moody’s Action

NEW YORK (Dow Jones)–As a potential credit-rating downgrade draws closer, Morgan Stanley (MS) Chairman and Chief Executive James Gorman may have a few cards up his sleeve, but Wall Street isn’t sure if it’s a good hand.

The securities firm may need to post $9.6 billion in additional collateral to counterparties and certain exchanges if two ratings firms were to cut its long term credit rating by three levels. Moody’s Investors [...]

Citigroup facing major downgrade from Moody’s

Citigroup, the third-largest US lender by assets, said a hypothetical two-level downgrade of its credit by all three ratings firms could compel the company to come up with $4.7 billion in cash.

The funds would be needed to cover collateral for derivative triggers and exchange margin requirements, the New York-based company said yesterday in its quarterly filing with securities regulators. The sum would be $1.1 billion if only Moody’s Investors Service [...]

Moody’s Weighing Ratings Cuts to 114 Institutions in 16 European Countries

Various austerity programs have been a disaster for the European recovery, shrinking the economy, reducing government revenues and tipping precarious borrowers from performing to nonperforming. If Europe’s banks collapse, U.S. banks will — at best — take a hard body blow from their exposure:

LONDON–European banks are bracing for a wave of ratings downgrades in coming weeks that could intensify pressure on the fragile industry and further undercut recent efforts to [...]

Robert Flanders: Rhode Island’s capital and biggest city, probably will seek bankruptcy court protection to deal with a budget deficit

From Bloomberg:

Providence (1055MF), Rhode Island’s capital and biggest city, probably will seek bankruptcy court protection to deal with a budget deficit, Robert Flanders, the state- appointed receiver for nearby Central Falls, said yesterday.

“I don’t see how they can get out of it without going there,” said Flanders, a former stateSupreme Court justice and a partner at Hinckley, Allen & Snyder LLP in Providence. He put Central Falls into bankruptcy in August and has since [...]

Fitch further cuts Detroit credit rating after judge’s injunction blocks Snyder plan

(Bloomberg) — Detroit had the credit grades on $2.5 billion of debt cut two levels deeper into junk byFitch Ratings, which said the city’s failure to address its fiscal crisis raised the odds that it will run out of cash.

Gov. Rick Snyder has been prevented by a judge from taking emergency action as Michigan’s biggest city failed to cut expenses, Fitch said. The city’s $270 million annual operating deficit is [...]

Moody’s downgrade of debt may force Detroit to pay $350 million to end swap agreements

Detroit had more than $2.5 billion of debt downgraded by Moody’s Investors Service as the city faces a deficit approaching $270 million. The move may force the city to pay $350 million over seven years to terminate swap agreements.

“Although efforts to stabilize the city’s finances and improve liquidity are ongoing and could be resolved over the very near term, protracted discussions continue and this uncertainty increases bondholder risks,” Moody’s said today in [...]

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