Post Tagged with: "ratings agencies"

India: rupee in freefall, stagflation setting in, risks of sovereign downgrade and investor panic rising

India: rupee in freefall, stagflation setting in, risks of sovereign downgrade and investor panic rising

This is beginning to sound like a broken record, but India’s currency has come under severe pressure – again. India’s central bank, the RBI, seems to have completely lost control over the rupee. The currency broke through 67 to the dollar this morning – a level that was difficult to fathom just a few months ago.

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Moody’s: U.S. banking system outlook changed to stable as economy improves

Moody’s: U.S. banking system outlook changed to stable as economy improves

Moody’s has changed its outlook on the U.S. banking system to stable from negative, reflecting continued improvement in the operating environment and reduced downside risks to the banks from a faltering economy, says Moody’s Investors Service in its latest “Banking System Outlook: United States of America.” The outlook had been negative since 2008.

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Full text: Moody’s upgrades Turkey’s government bond ratings to Baa3, stable outlook

Full text: Moody’s upgrades Turkey’s government bond ratings to Baa3, stable outlook

Editors note: Moody’s released the following press release yesterday in conjunction with a ratings action it took on Turkish sovereign debt. Moody’s Investors Service has today upgraded Turkey’s government bond ratings by one notch to Baa3 from Ba1, and has assigned a stable outlook. The key drivers for today’s rating action are: 1. Recent and expected future improvements in key […]

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Slovenia cut to junk by Moody’s; outlook negative

Slovenia cut to junk by Moody’s; outlook negative

Moody’s Investors Service released the following statement in conjunction with a ratings action it took today on Slovenian sovereign debt.

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Full Text: Moody’s affirms Ireland’s Ba1/NP ratings and negative outlook

Full Text: Moody’s affirms Ireland’s Ba1/NP ratings and negative outlook

Moody’s Investors Service has today affirmed the Republic of Ireland’s Ba1/Not Prime government bond ratings and negative outlook.

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Full Text: Moody’s Downgrades Argentina’s Foreign Law Bonds to Caa1, Affirms B3 Issuer Rating, Outlook Negative

Full Text: Moody’s Downgrades Argentina’s Foreign Law Bonds to Caa1, Affirms B3 Issuer Rating, Outlook Negative

Moody’s issued the following press release yesterday in relation to Argentina’s foreign-law sovereign obligations.

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Netherlands: Poor economy prompts Moody’s to change outlook on three Dutch banks to negative

Netherlands: Poor economy prompts Moody’s to change outlook on three Dutch banks to negative

Moody’s released the following statement in conjunction with a ratings action it took earlier today on three Dutch banks

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Has the UK finally lost its safe haven status?

Has the UK finally lost its safe haven status?

For domestic investors, the safe haven asset class are government liabilities if the government has substantially all liabilities in the currency it creates. For foreign investors, like domestic investors, you want to protect against default risk by investing in a currency area’s risk-free asset class but you also want to mitigate currency risk. That’s what safe haven risk is all about. The other stuff is irrelevant.

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When Safe Havens Fall

When Safe Havens Fall

So what is a safe haven you might ask? Well I certainly don’t have the final answer, but I would suppose it should as many as the following characteristics as possible.

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Ten things that should be on your radar screen this week

Ten things that should be on your radar screen this week

Here are 10 items that investors will be watching this week.

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Why Moody’s downgrade of UK sovereign debt is meaningless

Why Moody’s downgrade of UK sovereign debt is meaningless

Moody’s took away the UK’s triple A rating late Friday. A ratings downgrade has long been rumored, and although the timing is always surprising, the move itself has long been anticipated. Sterling slumped on the news in thin dealings, losing a cent in about 30 minutes. When it comes to corporate ratings we can appreciate that rating agencies may have access to private information. They may also be of value in some developing countries, where information is more difficult to secure. However, when it comes to large developed countries, the rating agencies have access only to public information and it is the same information that investors use to make their decisions.

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Full text: Moody’s downgrades UK’s bond rating to Aa1 from Aaa; outlook stable

Full text: Moody’s downgrades UK’s bond rating to Aa1 from Aaa; outlook stable

downgraded the domestic- and foreign-currency government bond ratings of the United Kingdom by one notch to Aa1 from Aaa. The outlook on the ratings is now stable.

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