Moody's downgrades big banks on changed policy
By Joe Rauch and David Henry
Wed Sep 21, 2011 6:05pm EDT
(Reuters) - Moody's Investors Service lowered debt ratings for Bank of America Corp, Citigroup Inc and Wells Fargo & Co on Wednesday, saying the U.S. government is getting less comfortable with bailing out large troubled lenders.
The government is "more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled," said the rating agency, a unit of Moody's Corp.
"This is crystallizing the fact we're in a new political reality," said Jason Ware, equity analyst with Salt Lake City-based Albion Financial Group.
Moody's decision hit Bank of America hardest, as it downgraded the long- and short-term debt of the holding company and long-term deposits at its main banking unit.
http://www.reuters.com/article/2011/09/21/us-bankofamerica-downgrade-idUSTRE78K4P020110921
Showing posts with label credit downgrade. Show all posts
Showing posts with label credit downgrade. Show all posts
Thursday, September 22, 2011
Monday, August 08, 2011
US downgrade 'sounds alarm bell': China media
US downgrade 'sounds alarm bell': China media
Standard & Poor's US debt downgrade was a wake-up call for the world, a commentary in a top Chinese state newspaper said, adding that Asian exporters faced special risks.
Citing economist Sun Lijian, the People's Daily on Sunday said Standard & Poor's Friday cut to the US' credit rating from the top notch triple-A to AA+ had "sounded the alarm bell for the dollar-denominated global monetary system".
The comments carried in the Communist Party mouthpiece follow a stinging attack launched by the official Xinhua news agency on Saturday, which said Beijing had "every right" to demand Washington safeguard Chinese dollar assets.
http://news.yahoo.com/china-hits-us-debt-addiction-downgrade-115303087.html
Standard & Poor's US debt downgrade was a wake-up call for the world, a commentary in a top Chinese state newspaper said, adding that Asian exporters faced special risks.
Citing economist Sun Lijian, the People's Daily on Sunday said Standard & Poor's Friday cut to the US' credit rating from the top notch triple-A to AA+ had "sounded the alarm bell for the dollar-denominated global monetary system".
The comments carried in the Communist Party mouthpiece follow a stinging attack launched by the official Xinhua news agency on Saturday, which said Beijing had "every right" to demand Washington safeguard Chinese dollar assets.
http://news.yahoo.com/china-hits-us-debt-addiction-downgrade-115303087.html
Muni Market Prepares for Lost AAA Ratings
Muni Market Prepares for Lost AAA Ratings
By Michelle Kaske - Aug 7, 2011 1:40 PM ET
The $2.9 trillion municipal bond market is preparing for “hundreds and hundreds” of downgrades after Standard & Poor’s lowered the U.S. one level to AA+, the first-ever reduction for the country.
S&P is likely to cut its ratings on municipal debt secured by the federal government, such as pre-refunded bonds, tax- exempts backed by U.S. agencies, and credits that are most dependent on federal spending, Peter DeGroot, head of municipal research at JPMorgan Chase & Co. (JPM), wrote in an Aug. 5 report distributed after the federal downgrade. The New York-based ratings company said it would release a statement on state and local issuers today.
http://www.bloomberg.com/news/2011-08-07/muni-market-prepares-for-loss-of-aaa-ratings-as-s-p-downgrades-u-s-credit.html
By Michelle Kaske - Aug 7, 2011 1:40 PM ET
The $2.9 trillion municipal bond market is preparing for “hundreds and hundreds” of downgrades after Standard & Poor’s lowered the U.S. one level to AA+, the first-ever reduction for the country.
S&P is likely to cut its ratings on municipal debt secured by the federal government, such as pre-refunded bonds, tax- exempts backed by U.S. agencies, and credits that are most dependent on federal spending, Peter DeGroot, head of municipal research at JPMorgan Chase & Co. (JPM), wrote in an Aug. 5 report distributed after the federal downgrade. The New York-based ratings company said it would release a statement on state and local issuers today.
http://www.bloomberg.com/news/2011-08-07/muni-market-prepares-for-loss-of-aaa-ratings-as-s-p-downgrades-u-s-credit.html
Sunday, August 07, 2011
S&P executive: 1 in 3 chance of future downgrade
S&P executive: 1 in 3 chance of future downgrade
WASHINGTON (AP) -- A Standard & Poor's official says there is a 1 in 3 chance that the U.S. credit rating could be downgraded another notch if conditions erode over the next six to 24 months.
The credit rating agency's managing director, John Chambers, tells ABC's "This Week" that if the fiscal position of the U.S. deteriorates further, or if political gridlock tightens even more, a further downgrade is possible.
http://hosted.ap.org/dynamic/stories/U/US_US_DEBT_RATING_CHAMBERS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-07-11-03-40
WASHINGTON (AP) -- A Standard & Poor's official says there is a 1 in 3 chance that the U.S. credit rating could be downgraded another notch if conditions erode over the next six to 24 months.
The credit rating agency's managing director, John Chambers, tells ABC's "This Week" that if the fiscal position of the U.S. deteriorates further, or if political gridlock tightens even more, a further downgrade is possible.
http://hosted.ap.org/dynamic/stories/U/US_US_DEBT_RATING_CHAMBERS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-07-11-03-40
Sunday, June 06, 2010
Rating Cut by Fitch on Wealthiest U.S. State
Saturday, June 5, 2010
Rating Cut by Fitch on Wealthiest U.S. State
http://www.economicpolicyjournal.com/2010/06/rating-cut-by-fitch-on-wealthiest-us.html
Connecticut is preparing to borrow $956 million to close a budget gap in the fiscal year beginning July 1, after borrowing money last year to cover a deficit of $947.6 million. Not good. Fitch has reduced the states credit rating from AA+ to AA.
“The downgrade reflects the state’s reduced financial flexibility, illustrated by its reliance on sizable debt issuances during the current biennium to close operating gaps in the context of already high liabilities,” Fitch said.
Connecticut is the wealthiest state on a per capita basis with personal income of $54,397 in 2009, according to Department of Commerce.
http://www.economicpolicyjournal.com/2010/06/rating-cut-by-fitch-on-wealthiest-us.html
Rating Cut by Fitch on Wealthiest U.S. State
http://www.economicpolicyjournal.com/2010/06/rating-cut-by-fitch-on-wealthiest-us.html
Connecticut is preparing to borrow $956 million to close a budget gap in the fiscal year beginning July 1, after borrowing money last year to cover a deficit of $947.6 million. Not good. Fitch has reduced the states credit rating from AA+ to AA.
“The downgrade reflects the state’s reduced financial flexibility, illustrated by its reliance on sizable debt issuances during the current biennium to close operating gaps in the context of already high liabilities,” Fitch said.
Connecticut is the wealthiest state on a per capita basis with personal income of $54,397 in 2009, according to Department of Commerce.
http://www.economicpolicyjournal.com/2010/06/rating-cut-by-fitch-on-wealthiest-us.html
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