Rating

S&P Downgrades US Credit Rating For First Time!

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– S&P downgrades U.S. credit rating for first time (Washington Post, Aug 6, 2011):

Standard & Poor’s announced Friday night that it has downgraded the U.S. credit rating for the first time, dealing a symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.

Lowering the nation’s rating to one notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less stable, less effective and less predictable.” It said the bipartisan agreement reached this week to find at least $2.1 trillion in budget savings “fell short” of what was necessary to tame the nation’s debt over time and predicted that leaders would not be likely to achieve more savings in the future.

“It’s always possible the rating will come back, but we don’t think it’s coming back anytime soon,” said David Beers, head of S&P’s government debt rating unit.

Read moreS&P Downgrades US Credit Rating For First Time!

Moody’s Downgrades Greek Credit Rating By Three Levels On Debt-Exchange Plan

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See also:

– Greece Just One Grade Above DEFAULT RATING As Fitch Slashes Rating By Another Three Notches:

…Fitch slashed its rating on Greece by another three notches and further into junk status. The move from B+ to CCC leaves Greece just one grade above a default rating.

– Greek Credit Rating Lowered Three Levels by Moody’s on Debt-Exchange Plan (Bloomberg, July 25, 2011):

Greece’s credit rating was cut three steps by Moody’s Investors Service, which said the European Union’s rescue for the debt-laden nation will cause “substantial” losses for investors, amounting to a default.

Greece’s long-term foreign currency debt was downgraded to Ca, their second lowest rating, from Caa1, the company said in a statement in London today. Moody’s said it will re-assess the risk profile of any outstanding or new securities issued by the Greek government after the debt exchange that’s part of the rescue plan has been completed.

“The combination of the announced EU program and the debt exchange proposals by major financial institutions imply that private creditors will experience substantial losses on their holding of Greek government bonds and this is something we need to reflect in the rating,” Moody’s senior analyst Sarah Carlson said in an interview.

Read moreMoody’s Downgrades Greek Credit Rating By Three Levels On Debt-Exchange Plan

S&P: Likelihood US Is Downgraded To AA As Soon As Early August Is 50-50

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– S&P Says Likelihood US Is Downgraded To AA As Soon As Early August Is 50-50 (ZeroHedge, July 21, 2011):

A rather sobering report out from S&P, which has no other function than to tighten the screws even more on those who prudently are holding out against extending the debt ceiling. As for S&P: please explain to US how 120% debt/GDP is better than 100% debt/GDP, and thus more worthy of a AAA rating? Please. Because we must be bloody stupid.

The U.S. Debt Ceiling Standoff Could Reverberate Around The Globe–With Or Without A Deal

As the Obama Administration and congressional Republicans continue to struggle over raising the government’s debt ceiling, Standard & Poor’s Ratings Services believes that the reverberations of the showdown may be deep and wide–particularly if Washington does not come to a timely agreement on the debt ceiling.

Our analysts have considered three hypothetical scenarios that could emerge, and we plan to publish articles today detailing our views on the potential effects of each on the financial services industry, corporate borrowers, structured finance, public finance borrowers, as well as economies and markets around the world. The scenarios are as follows:

  • Scenario 1–The White House and Congress agree to raise the debt ceiling and collaborate on a long-term framework for fiscal consolidation;
  • Scenario 2–The White House and Congress agree to raise the debt ceiling to avoid potential default but are not able to formulate what we consider to be a realistic and credible fiscal consolidation plan;
  • Scenario 3–The White House and Congress cannot agree to raise the debt ceiling by their Aug. 2 deadline, and the Treasury begins to sharply reduce spending to preserve cash for debt service and to try to keep within the debt ceiling. Such measures could conclude, if the standoff persisted for just a short while, with the Treasury missing an interest payment or failing to pay off maturing debt, i.e. a default.

Read moreS&P: Likelihood US Is Downgraded To AA As Soon As Early August Is 50-50

Moody’s Suggests US Eliminates Debt Ceiling – S&P: US Could Default Even if Debt Ceiling is Raised

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– Moody’s Suggests US Eliminates Debt Ceiling (CNBC, July 18, 2011):

Ratings agency Moody’s on Monday suggested the United States should eliminate its statutory limit on government debt to reduce uncertainty among bond holders.

The United States is one of the few countries where Congress sets a ceiling on government debt, which creates “periodic uncertainty” over the government’s ability to meet its obligations, Moody’s [MCO 35.34 -1.11 (-3.05%) ] said in a report.

“We would reduce our assessment of event risk if the government changed its framework for managing government debt to lessen or eliminate that uncertainty,” Moody’s analyst Steven Hess wrote in the report.

The agency last week warned it would cut the United States’ AAA credit rating if the government misses debt payments, increasing pressure on Republicans and the White House to come up with a budget agreement.

Moody’s said it had always considered the risk of a U.S. debt default very low because Congress has regularly raised the debt ceiling during many decades, usually without controversy.

However, the current wide divisions between the House of Representatives and the Obama administration over the debt limit creates a high level of uncertainty and causes us to raise our assessment of event risk,” Hess said.

– S & P: America Could Default Even if Debt Ceiling is Raised (Washington’s Blog July 18th, 2011):

As I noted yesterday, America could default even if the debt ceiling is raised.

One of the big, government-sponsored American rating agencies has just confirmed my post.

Specifically, Standard & Poor’s announced today:

[We’re putting U.S. debt on] CreditWatch with negative implications … owing to the dynamics of the political debate on the debt ceiling, there is at least a one-in-two likelihood that we could lower the long-term rating on the U.S. within the next 90 days ….

The political debate about the U.S.’ fiscal stance and the related issue of the U.S. government debt ceiling has, in our view, only become more entangled.

***

We may lower the long-term rating on the U.S. by one or more notches into the ‘AA’ category in the next three months, if we conclude that Congress and the Administration have not achieved a credible solution to the rising U.S. government debt burden and are not likely to achieve one in the foreseeable future.

The Washington Post adds:

Read moreMoody’s Suggests US Eliminates Debt Ceiling – S&P: US Could Default Even if Debt Ceiling is Raised

Now S&P Threatens US AAA Credit Rating Downgrade

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– S&P warns of US downgrade if no debt deal reached (Reuters, July 15, 2011):

– S&P Threatens US Downgrade, Sees ‘Small’ Default Risk (Wall Street Journal, July 15, 2011):

– Treasuries Decline After S&P Says It May Reduce U.S. AAA Credit Rating (Bloomberg, July 15, 2011):

– S&P Joins Moody’s, Dagong to Warn US Against Debt Default (International Business Times, July 15, 2011):

The chorus of voices warning against a US debt ceiling induced default is growing.

The S&P ratings agency said: “owing to the dynamics of the political debate on the debt ceiling, there is at least a one-in-two likelihood that we could lower the long-term rating on the U.S. within the next 90 days.”

Earlier, China, through its government affiliated ratings agency Dagong, dished out some harsh words.

Dagong CEO said: “if the raised limit fails to pass and the US faces default, the rating will be immediately and substantially downgraded.”

– S&P Sees ‘Small Risk’ of US Default (TheStreet, July 15, 2011):

“We still believe that the risk of a payment default on U.S. government debt obligations as a result of not raising the debt ceiling is small, though increasing,” the ratings agency said. “However, any default on scheduled debt service payments on the U.S.’ market debt, however brief, could lead us to revise the long-term and short-term ratings on the U.S. to ‘SD’ [selective default].”

More concerning for the markets may be S&P’s indication that it sees a 50-50 chance that it may cut its long-term rating on U.S. sovereign debt in the next three months.

Read moreNow S&P Threatens US AAA Credit Rating Downgrade

Greece Just One Grade Above DEFAULT RATING As Fitch Slashes Rating By Another Three Notches

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– Greece finance chief downplays default rating (AP, July 14, 2011):

ATHENS, Greece (AP) — Greece’s finance minister sought to downplay fears of the implications of a default rating being slapped on the debt-ridden country after an expected second bailout.

Evangelos Venizelos told Parliament Thursday that the country faced “no danger of bankruptcy” and that its banking system was secure.

…

On Wednesday, Fitch slashed its rating on Greece by another three notches and further into junk status. The move from B+ to CCC leaves Greece just one grade above a default rating.

Moody’s Places US AAA Credit Rating On Review For Downgrade As Debt Talks Stall

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See also:

– Russia Seeks To Loosen US Rating Credit-Rating Dominance, May Set Up Independent Rival Next Year

– Germany’s Rating Agency Feri Downgrades US Government Bonds: AAA to AA!

– China’s Rating Agency: ‘In Our Opinion The United States Has Already Been Defaulting’

– Moody’s Places U.S. on Review for Downgrade As Debt Talks Stall (Bloomberg, Jul 14, 2011):

Moody’s Investors Service put the U.S. under review for a credit rating downgrade as talks to raise the government’s $14.3 trillion debt limit stall, adding to concern that political gridlock will lead to a default.

The Aaa ratings of financial institutions directly linked to the U.S. government, including Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Federal Farm Credit Banks, were also put on review for cuts, Moody’s said in a statement today.

The U.S., rated Aaa since 1917, was put on review for the first time since 1995 on concern the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes even though the risk remains low, Moody’s said. The rating would likely be reduced to the Aa range and there is no assurance that Moody’s would return its top rating even if a default is quickly cured.

“It certainly underscores the importance of passing the debt ceiling and not putting us in default status, and making sure there’s a longer term fiscal plan to contain spending and the deficit we’ve been running up over the last few years,” said Anthony Cronin, a Treasury bond trader at Societe General SA in New York, one of the 20 primary dealers that trade with the Federal Reserve. “Maybe it’s the impetus to say we’ll need more of a concession.”

Read moreMoody’s Places US AAA Credit Rating On Review For Downgrade As Debt Talks Stall

Moody’s Cuts Ireland to Junk, Retains Negative Outlook; Why Ireland Should Be Thankful!

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– Moody’s Cuts Ireland to Junk, Retains Negative Outlook; Ireland Should Be Thankful (Global Economic Analysis, July 13, 2011):

Moody’s just effectively spit in the face of EU commissioner Michel Barnier who wants to prohibit rating debt of countries in rescue programs.

Read moreMoody’s Cuts Ireland to Junk, Retains Negative Outlook; Why Ireland Should Be Thankful!

Moody’s Downgrades Ireland’s Credit Rating From Baa3 To Junk

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– Moody’s Downgrades Ireland From Baa3 To Junk (ZeroHedge, July 12, 2011):

Who would have thought a few years ago that Moody’s would be one of the biggest supporters of the gold bulls…

Moody’s Investors Service has today downgraded Ireland’s foreign- and local-currency government bond ratings by one notch to Ba1 from Baa3. The outlook on the ratings remains negative.

Read moreMoody’s Downgrades Ireland’s Credit Rating From Baa3 To Junk

Russia Seeks To Loosen US Rating Credit-Rating Dominance, May Set Up Independent Rival Next Year

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– Russia Seeks to Loosen Rating Companies’ Grip (Bloomberg, July 13, 2011):

Russia and members of the Eurasian Economic Community, a grouping of former Soviet republics, are seeking to loosen the dominance of U.S. credit-rating companies and may set up an independent rival next year.

Prime Minister Vladimir Putin has said he’s an “ardent supporter” of the plan because Russia’s debt grade is an “outrage” that lifts corporate borrowing costs and increases risks. The nation’s sovereign credit rating was last raised by New York-based Moody’s Investors Service in 2008 to Baa1, the third-lowest investment grade, one step above Brazil and four below China.

“It’s madness to trust American rating agencies,” Sergei Glazyev, the group’s deputy general secretary, said in an interview in Moscow yesterday. “The market is objectively interested in new reference points.”

Russia is championing a new ratings company after Poland said last week it may use its six-month term holding the rotating presidency of the European Union to campaign for an independent European credit evaluator. Dagong Global Credit Rating Co., the first domestic rating company set up in China, began issuing sovereign ratings a year ago.

Russia is rated A by Dagong, one level below the U.S. Moody’s ranks Russia seven steps lower and Standard & Poor’s and Fitch Ratings eight levels below the United States’ AAA grade, their highest.

Read moreRussia Seeks To Loosen US Rating Credit-Rating Dominance, May Set Up Independent Rival Next Year

Germany’s Rating Agency Feri Downgrades US Government Bonds: AAA to AA!

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See also:

– China’s Rating Agency: ‘In Our Opinion The United States Has Already Been Defaulting’

– German Rating Agency Feri Downgrades US Government Bonds: AAA to AA! (ZeroHedge, June 10, 2011):

The first Western downgrade of US government bonds is a fact! The German credit rating agency Feri lowered its rating on US debt by a full notch, from AAA to AA.

Here is the German press release:

Feri Downgrades US Gov Debt AAA to AA

Here’s the English translation:

Homburg, 8 June 2011 – The Bad Homburg Feri EuroRating & Research AG downgraded the first credit rating agency’s credit rating for the United States from AAA to AA. Feri analysts justify the downgrade by the continuing deterioration of the creditworthiness of the country due to high public debt, inadequate fiscal measures, and weaker growth prospects.

Read moreGermany’s Rating Agency Feri Downgrades US Government Bonds: AAA to AA!

China’s Rating Agency: ‘In Our Opinion The United States Has Already Been Defaulting’

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– China ratings house says US defaulting: report (AFP, June 10, 2011):

A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order.

“In our opinion, the United States has already been defaulting,” Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying.

Read moreChina’s Rating Agency: ‘In Our Opinion The United States Has Already Been Defaulting’

S&P Cuts TEPCO’s Credit Rating To Junk (Likelihood Of A Default Increased To 53 Percent)

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– Tepco debt swaps facing 53% chance of defaulting (Japan Times, Bloomberg, June 2, 2011):

The cost of protecting Tokyo Electric Power Co.’s debt shows the likelihood of a default increased to 53 percent after the utility’s credit rating was cut to junk status by Standard & Poor’s.

The contracts to insure ¥6.85 trillion in bonds and loans of Tepco for five years jumped to as much as 913.5 basis points Tuesday, or ¥91.35 million per year to protect ¥1 billion of the debt, according to data provider CMA. That’s pricing in a 53 percent chance of default by 2016, according to data compiled by Bloomberg.

Read moreS&P Cuts TEPCO’s Credit Rating To Junk (Likelihood Of A Default Increased To 53 Percent)

Eurozone Debt Crisis Deepens: Greece’s 10 year government debt has surged to 16.98%, Portugal’s to 9.6% and Ireland’s to a new record at 10.76%. The yield on Italian 10-year government debt is up 9bp to 4.85% after S&P cuts its rating outlook on Italy’s sovereign debt to ‘negative’ from ‘stable’. The Spanish 10 year bond has risen 11 basis points to 5.57%.

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– Eurozone Debt Crisis Deepens Sending Euro Lower And Gold To New Record At EUR 1,080/oz (ZeroHedge):

Eurozone Debt Crisis Deepens Sending Euro Lower and Gold to New Record at EUR 1,080/oz

The euro, global equities and bonds in peripheral Eurozone countries are all lower this morning on heightened concerns about the debt crisis in the Eurozone. The euro has fallen against all currencies and is now at a record low against gold at EUR 1,080.21/oz. Silver is lower against most currencies but is higher against the Australian dollar and the euro ( EUR 24.80/oz).

Greece’s 10 year government debt has surged to 16.98%, Portugal’s to 9.6% and Ireland’s to a new record at 10.76%. The yield on Italian 10-year government debt is up 9bp to 4.85% after S&P cuts its rating outlook on Italy’s sovereign debt to “negative” from “stable”. The Spanish 10 year bond has risen 11 basis points to 5.57%.
Equity markets in Europe have followed their Asian counterparts lower. Asian equities fell due to Eurozone debt concerns but also inflation concerns and the risk that the US economic recovery is faltering. Italy’s stock market (FTSE MIB) is down 3% while Spain’s IBEX is down 1.7%.

Besides sovereign debt risk, gold is also being supported by geopolitical risk as seen in the increasingly unstable nuclear armed Pakistan where armed militants attempted to take over Pakistan’s naval air force headquarters.

There is increasing tension between the U.S. and Pakistan after what the U.S regards as Pakistan’s failure or collusion regarding Osama Bin Laden.

China has increasing economic and military ties and interests in Pakistan and has vowed to standby Pakistan and has called on the world to respect Pakistan’s sovereignty.

Separately, in an interview with the Financial Times on Saturday, Henry Kissinger has warned of a world war involving Pakistan and India.

And for Gerald Celente ‘THE GREAT WAR’ has already started (and I totally agree with him):

– The No.1 Trend Forecaster Gerald Celente’s Dire Warning For The World (Video – Must-see!)

– Gerald Celente Special Trend Alert: The 1st Great War of 21st Century Has Begun!

Webster Tarpley:

– US, Pakistan Near Open War; Chinese Ultimatum Warns Washington Against Attack

Wall Street Journal, May 23, 2011:

– Pakistan: Beijing Agrees to Operate a Key Port (WSJ)

TEPCO Admits 3 Nuclear Reactors May Have Melted Down

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May 16 (Bloomberg) — Tokyo Electric Power Co. said fuel in other reactors at its damaged nuclear plant may have melted, after confirming rods in the No. 1 unit had fallen from their assembly, potentially delaying plans to resolve the crisis.

“The findings at the No. 1 reactor indicate the likelihood that the water level readings in the other reactors aren’t accurate,” Junichi Matsumoto, a general manager at the utility known as Tepco, said today. “It could be that a meltdown similar to that in the No. 1 reactor has occurred.”

Read moreTEPCO Admits 3 Nuclear Reactors May Have Melted Down

US Credit Rating Outlook Lowered By Standard & Poor’s

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If the US were a corporation it would be history.

Soon we will witness the greatest financial collapse in world history.

Change we can believe in!

See also:

– Teleprompter Obama Confirms Leadership Failure, Pulls Out Mother Of All Mutual Assured Nukes: ‘Raise Debt Ceiling Or Risk Global Recession’

– Treasury Department: US Deficit Up 15.7 Percent In The First 6 Months Of Fiscal 2011

– PIMCO’s Bill Gross Is Now Short US Debt, Hikes Cash To $73 Billion, An All Time Record


(Click on image to enlarge.)

NEW YORK (CNNMoney) — Standard & Poor’s lowered its outlook for the nation’s long-term debt Monday, saying the political grousing over the deficit could put more pressure on the still shaky economic recovery.

“The outlook reflects our view of the increased risk that the political negotiations over when and how to address both the medium- and long-term fiscal challenges will persist until at least after national elections in 2012,” said S&P credit analyst Nikola Swann.

S&P maintained its top-tier ‘AAA/A-1+’ credit rating on U.S. sovereign debt, saying the nation’s “highly diversified” economy and “effective monetary policies” have helped support growth. But the ratings agency lowered its outlook for America’s long-term credit rating to “negative” from “stable.”

Read moreUS Credit Rating Outlook Lowered By Standard & Poor’s

Moody’s Downgrades Spain’s Credit Rating

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See also:

– Portugal: Only €4 Billion In Cash Vs €20 Billion In Bond Maturity And Deficit Outflows In 2011

– Spain Is Still The Elephant In The European Room!

Flashback:

– Prof. Nouriel Roubini Tells Portugal To Seek Bailout, Spain ‘Too Big To Bail Out’:

Nouriel Roubini, the US economist, said Portugal should consider asking for a bailout before its financial plight worsens as the euro fell after the €85bn Ireland bailout failed to ease eurozone debt fears.

However, he said neighboring Spain, Europe’s fourth-largest economy, is “too big to bail out.”


Moody’s has reignited the storm of controversy over the power of rating agencies after it downgraded Spain, and warned that the bank clean-up will cost vastly more that claimed.


A poster reading ‘Stop the crisis, create a company’ outside the Bank of Spain building in Madrid Photo: AP

The move comes a day before a crucial summit of EMU leaders to thrash out a “grand deal” intended to create workable machinery for the euro and end the debt crisis once and for all.

Moody’s cut Spain’s credit by one notch to Aa2 and said Madrid’s estimates of €20bn (£17.2bn) of fresh capital needed to rebuild the banks and cajas is too low. “The overall cost is likely to be nearer €40bn to €50bn,” rising to as much as €120bn in a “stressed scenario”.

Moody’s report raises fresh doubts over Spain’s ability to fend off contagion as the bond spreads on Greek, Irish, and Portuguese debt reach post-EMU highs.

Read moreMoody’s Downgrades Spain’s Credit Rating

Moody’s Cuts Greece’s Credit Rating Again

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See also:

– With $5 Trillion In US And European Funding Needs Over The Next 3 Years, How Long Until The Global Monetization Tsunami Hits (Again)?

– Portugal: Only €4 Billion In Cash Vs €20 Billion In Bond Maturity And Deficit Ouflows In 2011

– Spain Is Still The Elephant In The European Room!

Happy currency reform!

• Ratings agency warns of more cuts if Greece pulls back from reforms
• EU leaders fear offering bailout to Portugal will leave Spain exposed


Moody’s has angered the Greek government, including finance minister George Papaconstantinou, by slashing its credit rating to B1. Photograph: Louisa Gouliamaki/AFP

Portugal took a step nearer a humiliating multibillion-pound bailout by the European Union on Monday after Greece saw its credit rating slashed to a new low and speculation grew that eurozone leaders will fail this weekend to agree measures to prevent a repeat of last year’s sovereign debt crisis.

The ratings agency Moody’s cut Greece’s credit rating by three notches to B1, which analysts said was deep into “junk” territory, sending the cost of insuring the country’s debt soaring.

The downgrade, which was attacked as reckless and “completely unjustified” by the Greek government, highlighted the collapse in confidence among international investors who fear peripheral eurozone countries such as Greece, Portugal and Ireland cannot afford to repay their debts.

Greece, like Ireland, has already been forced to accept a rescue package put together by the EU and the International Monetary Fund. Portugal is widely regarded as the next country in need of a bailout as it struggles to refinance its debts while still in recession.

Read moreMoody’s Cuts Greece’s Credit Rating Again

S&P Warns of Further Credit Rating Downgrades on Portugal and Greece

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LONDON (AP) — Leading credit rating agency Standard & Poor’s has warned that it could further downgrade both Portugal and Greece’s debt in the coming two months, depending on the outcome of a crucial European leaders’ summit later this month.

The agency said in a report Wednesday that it is maintaining its A- rating on Portugal and its BB+ rating on Greece but has kept both countries on so-called “CreditWatch with negative implications.”

Heavily indebted Greece accepted a bailout last year, as did Ireland, and ailing Portugal is widely expected to follow suit even though it managed to raise another euro1 billion ($1.38 billion) on Wednesday

S&P said it could lower the ratings on both countries within the next two months after analyzing an expected new European bailout mechanism. EU policymakers are set to decide later this month on the key features of the European Stability Mechanism, which is due to replace the current European Financial Stability Facility from 2013.

Read moreS&P Warns of Further Credit Rating Downgrades on Portugal and Greece

Moody’s Downgrades German Bank Subordinated Debt

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Josef Ackermann Bilderberg 2010 in Sitges (Click on image to enlarge.)

18 Feb. (Bloomberg) — German banks’ subordinated debt securities valued at 24 billion euros ($33 billion) were downgraded by Moody’s Investors Service on the prospect that new legislation will increase the risk of losses among debt holders.

Moody’s cut the ratings of lower Tier 2 notes, a layer of debt that’s subordinated by coming behind senior bonds in the queue for repayment after a bank collapses. Like other governments seeking to ensure creditors pay up before taxpayers have to contribute, German law now removes the protection Tier 2 bonds enjoyed from the authorities’ preference for saving lenders before they fail.

“The new legislation materially reduces the likelihood of government support for LT2 securities and therefore took out the state support uplift,” BNP Paribas SA analysts Olivia Frieser and Ivan Zubo wrote in a note to clients today. “The downgrades are as harsh as we had expected, which may weigh on sentiment.”

The cost of insuring German bank debt rose, according to CMA prices for credit-default swaps. Contracts on the subordinated debt of Deutsche Bank AG jumped 12 basis points to 160, the highest in five weeks. Swaps linked to Commerzbank AG’s junior debt climbed 25 basis points to 450 and senior contracts rose 10 to 190.
Toughening Rules

Read moreMoody’s Downgrades German Bank Subordinated Debt

Moody’s May Downgrade Ratings of Four Biggest Australian Banks

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Feb. 16 (Bloomberg) — Australia’s four biggest banks and their New Zealand unit may have their ratings cut by Moody’s Investors Service on concern that access to overseas markets for funding will be “significantly restrained.”

Australia & New Zealand Banking Group Ltd., National Australia Bank Ltd., Commonwealth Bank of Australia and Westpac Banking Corp. hold Moody’s second-highest Aa1 rating. They’re likely to remain in the Aa category after the review, Moody’s said in a statement today.

Read moreMoody’s May Downgrade Ratings of Four Biggest Australian Banks

Standard & Poor’s And Moody’s Warn On US Credit Rating

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The elite puppet Obama administration is doing what it does best:

– US Government Spends $6.85 Million Per Minute

Bankrupting America!

Americans never had a choice.

Preparing for collapse:

– Virginia – HOUSE JOINT RESOLUTION NO. 557: ‘Establishing a joint subcommittee to study whether the Commonwealth should adopt a currency to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a MAJOR BREAKDOWN of the Federal Reserve System.’

S&P and Moody’s warned the U.S. about its credit rating and urged the government to do more to arrest a deteriorating fiscal situation.


A Wall Street sign stands outside the New York Stock Exchange.

Jan. 13 (Wall Street Journal) — With attention focused on sovereign-debt worries in Europe, two major credit-rating firms reminded investors again that the U.S. has debt problems of its own.

Investors bought Treasury debt nonetheless, ignoring the comments, which echoed prior statements by the companies and may still be months or years away from having any practical meaning.

“The warning on the U.S. rating is well-founded,” said Brian Yelvington, chief fixed-income strategist at Knight Capital. “However, it will probably fall on deaf ears until the peripheral Europe story plays out.”

Moody’s Investors Service said in a report on Thursday that the U.S. will need to reverse the expansion of its debt if it hopes to keep its “Aaa” rating.

“We have become increasingly clear about the fact that if there are not offsetting measures to reverse the deterioration in negative fundamentals in the U.S., the likelihood of a negative outlook over the next two years will increase,” Sarah Carlson, senior analyst at Moody’s, said.

Read moreStandard & Poor’s And Moody’s Warn On US Credit Rating

France’s AAA Credit Rating at Risk: Euro Credit

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See also:

– Rothschild Bank AND Goldman Sachs Are Both On The LIST Of Bondholders Getting US Taxpayer Billions In Irish Bailout

– Ireland’s Credit Rating Cut Five Levels By Moody’s With Negative Outlook

– Spain’s Credit Rating on Review by Moody’s

– Ireland Bailout Fails To Calm Nervy Markets – Prof. Nouriel Roubini Tells Portugal To Seek Bailout, Spain ‘Too Big To Bail Out’

France’s AAA Grade at Risk as Rating Cuts Spread: Euro Credit

Dec. 20 (Bloomberg) — France risks losing its top AAA grade as Europe’s debt crisis prompts a wave of downgrades that threatens to engulf the region’s highest-rated borrowers, with Belgium also facing a possible cut.

Moody’s Investors Service said Dec. 15 it may lower Spain’s rating, citing “substantial funding requirements,” and slashed Ireland’s rating by five levels on Dec. 17. Standard & Poor’s is reviewing its assessments of Ireland, Portugal and Greece. Costs to insure French government debt rose to a record today with the country’s credit default swaps more expensive than lower-rated securities from the Czech Republic and Chile.

“Every sovereign may get penalized in the year ahead,” said Toby Nangle, who helps oversee $46 billion as director of asset allocation at Baring Asset Management in London. “It would be a big deal if France was to have its AAA rating stripped. I don’t think the likelihood of a downgrade is reflected in the market.”

European Union leaders agreed last week to amend the bloc’s treaties to create a permanent debt-crisis mechanism in 2013 in an effort to stem contagion that started more than a year ago in Greece. Government bond yields climbed across the region even after Greece and Ireland were rescued and a backstop facility worth about $1 trillion was created.

“If problems in the euro zone aren’t solved quickly, then the conditions of refinancing will be expensive for these countries and the ratings agencies will do more downgrades,” said Ralf Ahrens, who helps manage about $20 billion as head of fixed income at Frankfurt Trust. “We already see these dynamics in the market. I see France as a risk.”

Read moreFrance’s AAA Credit Rating at Risk: Euro Credit

Ireland’s Credit Rating Cut Five Levels By Moody’s With Negative Outlook

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Ireland has been completely bankrupted and destroyed by the elite.

Nationalized Anglo Irish Bank losses are the worst in the entire world!

The elite puppet government and the elite puppet banksters have even stolen the pension reserve funds:

– And Now … Ireland: Pension Reserve Funds To Be Spent On The Banksters

Iceland didn’t bail out the banksters:

– Iceland: Economy Exits Recession

If Spain needs a bailout, it’s game over:

– Spain’s Credit Rating on Review by Moody’s

And this is the best place to be:

– Why is Greenland so rich these days? It said goodbye to the EU!

Dec. 17 (Bloomberg) — Ireland’s credit rating was cut five levels by Moody’s Investors Service and further downgrades are possible as the government struggles to contain losses in the country’s banking system.

The rating was lowered to Baa1 from Aa2, Moody’s said in an e-mailed statement from London today. That’s three levels above non-investment grade and the same level as countries including Russia and Lithuania. The outlook on the rating is “negative,” Moody’s said.

Irish lawmakers on Dec. 15 voted to accept an 85 billion- euro ($113 billion) aid package from European governments and the International Monetary Fund to stabilize the country’s finances. Moody’s said that confidence in Irish banks “evaporated” in the run-up to the bailout.

“While a downgrade had been anticipated, the severity of the downgrade is surprising,” Glas Securities, the Dublin-based fixed-income firm, said in an e-mailed note today.

Read moreIreland’s Credit Rating Cut Five Levels By Moody’s With Negative Outlook