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’Standard & Poor’s speak the truth on Europe’s stress tests
Standard & Poor’s has dug into the European banking stress tests before.
But its latest review — out on Wednesday — really sums up the matter. It’s always been politically impossible for the European Banking Authority to assume real (restructuring) losses in the exercise.
DeKalb County, Georgia on municipal minds
On Friday S&P stressed its March 29 five-notch downgrade of the GO and appropriation-backed debts of DeKalb County, Georgia was “not the canary in the coal mine, but more the anomaly”.
But in a municipal market report also out on Friday,
S&P downgrades Greece
The rating agency has just cut Greece’s sovereign rating (Hellenic Republic) by one notch: from A to A-:
Following a relatively modest improvement in the general government deficit since 2004, Greek public finances are,
Rating cows
On Wednesday, the House Oversight Committee of the US Congress held a hearing on the rating agencies. And it released some explosive material – the implications of which don’t yet seem to have quite sunk in.
Rating agencies ‘broke bond of trust’
Credit ratings agencies were fully aware that their conflicts of interest were giving unduly high scores to risky assets, threatening the stability of the entire financial system, US lawmakers said yesterday.
S&P, credit pontificator
Credit rating agency Standard & Poor’s used a report today on fear in the markets to do a bit of navel gazing.
To wit:
OUR ROLE IS TO OPINE ON CREDITWORTHINESS, NOT DRIVE IT
At times like this,
Downgrading the USA
A sovereign’s future debt path can not only be determined by its existing stock of debt, its future budget balances, real interest rates, and exchange rates, it can also be determined by discrete, one-off events that add to the government’s debt burden.
On AIG: 72 hours to live
Actually, 48 hours – 72 hours, in the event of a credit rating downgrade.
So reports the New York Times, citing an individual close to the firm. The reason for the dramatic warning: ratings downgrades would spell huge collateral calls from counterparties on AIG’s CDS.
S&P to bring transparency to buy-outs
Private equity groups will soon have more financial information disclosed publicly about the performance of the European companies they invest in under changes to Standard & Poor’s debt ratings. From December,
CDO watch: ratings shopping
Several CDOs are going into liquidation on Tuesday – a sign, perhaps, that senior noteholders are losing their nerve amid more signs of deterioration in MBS fundamentals, as reported by the rating agencies this week.
[CPDO rating error] Moody’s on ratings watch negative
After close of markets New York time, Standard & Poor’s put Moody’s short term debt on credit watch negative:
NEW YORK (Standard & Poor’s) May 22, 2008–Standard & Poor’s Ratings Services today placed its ‘A-1′ commercial paper rating for Moody’s Corp.
The rating game
Take a deep breath now. We’re offering up a 5,000 word analysis – from this weekend’s New York Times Magazine. It’s not a typical leisurely-read-on-a-Sunday-in-April affair, admittedly, tackling the tricky relationship between Wall Street’s mortgage machine and the credit rating agencies over the recent years.
Panic over! (almost) – or so says S&P
Put the pistol down. Move away from the ledge. We can talk this through. The worst is all but over. Witness the title of the latest tome from Standard & Poor’s:
More Subprime Write-Downs To Come, But The End Is Now In Sight For Large Financial Institutions
Analysts at the rating agency reckon that while there might well be a bit more painful mark to market-ing to be done for Q1,
Brace yourselves: S&P adjusts risk models
Late last night, rating agency Standard & Poor’s did some quiet housekeeping.
In a late press release, S&P announced it was adjusting its cumulative loss measure on 2006 subprime collateral to 19 per cent – up from 14 per cent:
Legal attacks on rating agencies
Ratings agencies Standard & Poor’s and Moody’s have become embroiled in legal action in the wake of the credit crisis, reports the Daily Telegraph. Action has been brought by shareholders, including pension and annuity funds,