Some interesting bond downgrades in the last 24 hours (BP, IL, Greece)

vanity | 15 JUNE 2010 | 2banana

[2banana]

Some interesting bond downgrades in the last 24 hours…

BP from AA to BBB (Fitch)

Illinois from A+ to A (Fitch)

Greece from A3 to Ba1 (Junk) (Moody’s)

And usually the rating agencies are WELL behind the power curve.

All is well.

[GonzoGOP]

Illinois from A+ to A (Fitch)

How are we still rated above of junk. There is no way Illinois can pay of its debts. And our all Democrat state legislature is spending more money that it doesn't have any day. We have taxed industry right out of the state. Illinois is hopeless. They can't even pay out the income tax returns. Why anyone would buy an Illinois bond is beyond my comprehension.

[drpix]

Interest mix! Illinois, BP, Greece: Ghosts of Obama, past present and future?

[drpix]

correction: Interest mix = InterestING mix

[Thermalseeker]

Why anyone would buy an Illinois bond is beyond my comprehension.

After witnessing what happened to the GM and Chrysler bond holders under the Obama Administration why would anyone buy a corporate bond, either?

[NVDave]

And remember: the bond rating companies are usually the last to state the obvious.

Depending on the headline issue involved, there’s up to a three month delay by these idiots in stating the obvious. You or I would have sold any Greek bonds we had back in, what, January?

The ratings houses, however, still have the Greek paper way above where the market is pricing the paper, or how the markets are pricing the risk of default.