Keyword: creditrating

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  • Govt official: US expecting S&P downgrade

    08/05/2011 2:36:33 PM PDT · by Bigtigermike · 29 replies
    ABC ^ | Friday August 5, 2011 | Jake Tapper
    A government official tells ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value. Officials reasons given will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction.
  • Chinese agency cuts U.S. debt rating again

    08/02/2011 10:51:36 PM PDT · by george76 · 62 replies
    Market Watch ^ | Aug. 2, 2011 | Michael Kitchen,
    Chinese credit-rating agency Dagong Global Credit Rating Co. again downgraded U.S. sovereign debt Wednesday and warned of further downgrades, the state-run Xinhua news agency reported.... Dagong cut U.S. Treasurys to A from A+, with a negative outlook, saying growth in U.S. debt is still outpacing revenue growth. The latest move followed a Dongang downgrade of U.S. debt from AA to A+ in November, citing the launch of the Federal Reserve's second round of quantitative easing. "The agency said the approval to raise the debt ceiling indicated that there will not be any positive changes in factors that will influence the...
  • Moody's affirms AAA rating, lowers outlook

    08/02/2011 4:55:09 PM PDT · by silentknight · 41 replies
    CNN ^ | 8/2/11 | Charles Riley
    NEW YORK (CNNMoney) -- Credit rating agency Moody's said Tuesday the United States will keep its sterling AAA credit rating for the time being, but lowered its outlook on U.S. debt to "negative."
  • Moody's likely to affirm U.S. rating, negative outlook(OMG)

    07/29/2011 2:30:04 PM PDT · by mdittmar · 20 replies
    Reuters ^ | Jul 29, 2011 | Reuters
    (Reuters) - The United States' triple-A credit rating is likely to be affirmed by Moody's with a negative outlook, the ratings agency said on Friday, signaling that a downgrade would not come immediately, but possibly in the medium term.
  • Lawmaker probing if Treasury meddled in S&P rating

    07/27/2011 6:37:38 PM PDT · by markomalley · 14 replies
    Reuters ^ | 7/27/11 | Sarah N. Lynch and Rachelle Younglai
    A congressional panel is examining whether the Obama administration tried to unduly influence Standard & Poor's before the credit rater revised its outlook on the debt rating to negative. Randy Neugebauer, the Republican chairman of a House oversight panel, said on Wednesday his staff is probing whether Treasury tried to make material changes to a draft of S&P's news release announcing the negative outlook revision in April. "Our concern was if the administration was trying to influence this rating decision some -- above what would be a normal practice," Neugebauer told reporters after a hearing examining oversight of the credit...
  • Egan-Jones Downgrades US credit rating to AA

    07/27/2011 12:35:07 AM PDT · by greeneyes · 34 replies
    Dow Jones Newswire ^ | 7/26/2011 | Ackerman & Taylor
    Egan-Jones downgrades U.S. rating to AA+ from AAA -Small ratings agency unlikely to have market-moving implications, but comes amid possible downgrades from larger ratings agencies. -Egan-Jones cites rising debt-to-GDP ratio for downgrade rather than delay in raising the debt ceiling. By Andrew Ackerman and Mark Taylor Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- Egan-Jones Ratings Co. over the weekend lowered its rating on U.S. debt, the ratings firm's president, Sean Egan, announced Monday.
  • The Kabuki theatre of America's Debt Ceiling

    07/26/2011 11:23:59 PM PDT · by bruinbirdman · 5 replies
    The Telegraph ^ | 7/26/2011 | Ambrose Evans-Pritchard
    Calm down. The US will not miss a coupon payment on its $14.3tn debt next Wednesday. A genuine default would be “Lehman on Steroids” in the words of Ex-Treasury secretary Larry Summers. Precisely for that reason President Obama will not pull the trigger, EVEN IF the debt ceiling talks break down in acrimony. Obama still has a clutch of cards to play, in extremis. As Yves Smith from Naked Capitalism argues, the White House can challenge the constitutionality of the debt ceiling in Congress. The 14th Amendment of the Constitution states that the “validity of the public debt of the...
  • Great news: Downgrade could come as soon as Friday

    07/26/2011 8:12:58 AM PDT · by Mozilla · 25 replies
    Hot Air ^ | July 26, 2011 | Ed Morrisey
    Barack Obama has spent the last several weeks warning that a failure to raise the debt ceiling by the “drop-dead date” of August 2nd would cause a ruinous downgrade of Treasury bonds and an economic disaster for the US. However, the downgrade may come sooner than that, because the debt ceiling is actually a secondary condition to the ratings agencies. The problem, as they see it, is not that America can’t pay its debts next month, but that America has grown its debt to such a degree that we can’t pay them in the long run without serious restructuring of...
  • Congress Warned of Credit 'Downgrade' if War Savings Counted as Deficit Reduction

    07/25/2011 3:41:48 PM PDT · by tobyhill · 11 replies
    Fox News ^ | 7/25/2011 | By Judson Berger
    Senate Democrats' inclusion in their proposed debt package of $1 trillion in savings from the wars in Iraq and Afghanistan may not satisfy ratings agencies threatening a credit downgrade since the wars were expected to end with or without a debt deal. The budget gimmick is one that has been used by both parties. President Obama and House Speaker John Boehner had earlier considered employing it during discussions that have since broken down. Now Senate Democratic Leader Harry Reid is using the trick in his $2.7 trillion deficit-reduction plan, according to aides. Boehner has not indicated where he would draw...
  • A Downgrade of US Debt Won’t Matter as Much as You Think (Good! Don't raise the debt ceiling)

    07/19/2011 4:24:32 PM PDT · by tobyhill · 22 replies
    cnbc ^ | 7/19/2011 | John Carney
    A lot of people assume that if the ratings agencies downgrade the credit rating of the United States, it will trigger a sell-off of Treasurys. Some even suppose that a sell-off would be automatically triggered by regulatory and fund charter requirements. Fortunately, this isn’t true. It’s very likely that a downgrade of the credit rating of the U.S. would trigger a sell-off, but it’s far from clear that investors would sell U.S. government debt. More likely the investors would sell risk assets—equities, high yield corporate bonds, mortgage securities—and actually buy U.S. government debt. What's certain is regulations won’t require most...
  • Egan-Jones Officially Cuts U.S. Credit Rating

    07/19/2011 8:14:16 AM PDT · by freespirited · 3 replies
    Wall Street Pit ^ | 07/19/11 | Larry Doyle
      Cutting a credit rating is significantly different that placing it on ‘watch’ or ‘under review’.Most readers are likely fully aware that Standard and Poor’s and Moody’s have sent out serious warning signals about the potential downgrade of the United States AAA credit rating.That said, another SEC officially recognized ratings entity has gone one step further and actually lowered Uncle Sam’s standing by one notch.What firm is so bold and brazen to send this volley across Capitol Hill and down Pennsylvania Avenue? Egan-Jones.Unlike the supposed brand name rating agencies which did little to help ordinary investors going into our economic...
  • Fitch: 'AAA' rating in jeopardy

    07/18/2011 1:30:13 PM PDT · by Qbert · 9 replies
    Politico ^ | 7/18/11 | JENNIFER EPSTEIN
    Another major bond rating firm on Monday reiterated its threat to downgrade the U.S. government to a B-plus rating if the debt ceiling isn’t raised by August 2 and the government defaults on its debts. The warning from Fitch Ratings comes after Moody’s and S&P warned last week that they would lower the U.S. rating from the top mark of AAA if the country is unable to repay its debts next month. Fitch said Monday that it will place the U.S. rating in what it calls “ratings watch negative,” a status that can lead to downgrading in three-to-six months. The...
  • Ron Paul: "America's AAA Rating Not Worth Saving" Because "We Are Insolvent"

    07/14/2011 12:03:53 PM PDT · by SeekAndFind · 19 replies
    Zero Hedge ^ | 07/14/2011 | Tyler Durden
    The man who yesterday got into a heated argument with the chairsatan on whether gold is or isn't money (a Bernanke response already mocked to death so we will leave it alone), shares his take on the most recent bout of scaremongering by Moody's (with S&P doing in private today what Moody's did in public yesterday) with Bloomberg TV's Erik Schatzker. When asked if the American AAA rating is worth saving, his reply: "probably not." Paul continued: "I think if you had a market evaluation on this issue, it should have marked down a long time ago." The reason the...
  • Red China: Dagong is likely to downgrade US rating

    07/13/2011 7:50:37 PM PDT · by bruinbirdman · 17 replies
    China Daily ^ | 7/13/2011
    Debt limit aside, borrowing to pay off loans won't work, agency says The US' sovereign credit rating is likely to be downgraded regardless of whether the US Congress reaches an agreement on raising its statutory debt limit, Chinese rating agency, Dagong Global Rating Co Ltd, said on Monday. "If the debt limit is raised and the public debt continues to grow, it will further damage the US' debt-paying ability, which is a key factor in Dagong's evaluation, and we will consider lowering its ratings accordingly," said Guan Jianzhong, chairman and CEO of Dagong. "If the raised limit fails to pass...
  • Moody's adds pressure to stalled debt talks

    07/13/2011 7:48:47 PM PDT · by chessplayer · 22 replies
    WASHINGTON (Reuters) - Moody's Investors Service jolted White House debt talks on Wednesday with a warning that the United States may lose its top credit rating in the coming weeks, piling pressure on Washington to lift its debt ceiling. Underscoring the effect a potential default would have on financial markets, Federal Reserve Chairman Ben Bernanke said if Washington failed to raise the U.S. borrowing limit in time, the United States would pay creditors first and stop benefits such as payments under the Social Security retirement program.
  • China ratings house says US defaulting: report

    06/10/2011 5:57:36 AM PDT · by Zakeet · 3 replies
    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. Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies -- eroding the wealth of creditors including China, Guan said. Guan did not immediately respond to AFP...
  • Number one reason not to raise the debt limit

    06/09/2011 5:29:51 PM PDT · by Jim Robinson · 42 replies
    vanity | June 9, 2011 | Jim Robinson
    Dear Mr President, When you're head over heels in debt and your credit cards are maxed out and your credit rating is falling, you don't borrow more money. If you do, your chances of defaulting or going bankrupt are greater and your credit worthiness decreases. Don't raise the limit. Don't borrow. Cut the spending, stupid! You want to spur jobs and growth? Easy. Cut the spending, cut the government, cut the regulations, cut the red tape, cut the bureaucracy, lower the taxes and get the hell out of the way! Our people will produce if allowed. And what's this crap...
  • S&P: 'Important crossroad' for California credit rating

    05/19/2011 12:46:59 PM PDT · by SmithL · 7 replies
    SacBee: Capitol Alert ^ | 5/19/11 | Kevin Yamamura
    Standard & Poor's said Thursday that California sits at an "important crossroad" for its credit rating depending on how it deals with its structural deficit problems in the coming weeks. California has never defaulted on general obligation bond repayment, but the state's A- rating already ranks lowest in the nation in the wake of annual budget woes.
  • W.H. warns of debt 'calamity'

    05/18/2011 4:08:25 PM PDT · by Sub-Driver · 44 replies
    W.H. warns of debt 'calamity' By ABBY PHILLIP | 05/18/11 4:12 PM Updated: 05/18/11 4:56 PM In an effort to clamp down on “misinformation” about the debt ceiling and to ratchet up the pressure on Congress to act, the Obama administration said Wednesday that there is no “Plan B” for the government if Congress fails to raise the borrowing limit. Unlike the budget standoff in March, where a plan would have gone into place if the government shut down, an administration official warned that there is no “secret plan” that would kick in if the government runs out of borrowing...
  • Taxes aren't the answer

    04/25/2011 4:28:38 AM PDT · by Scanian · 51 replies
    NY Post ^ | April 25, 2011 | Editorial
    Standard & Poor's warning last week of a possible downgrading of America's credit rating sent tremors through markets worldwide -- and underscored the nation's short- and long-term deficit and debt woes. The warning came just days after the speech in which President Obama basically dismissed the House GOP's comprehensive long-term budget outline -- which addresses the need to restrain growth in discretionary spending and entitlements. Instead, the president just focused on raising income -- and possibly payroll -- taxes on the wealthiest Americans. On cue, administration supporters pushed the usual talking point: The wealthy aren't paying "their fair share" since...
  • Credit Rating Wake Up Call on Debt?

    04/21/2011 11:52:32 AM PDT · by JohnRLott · 4 replies
    Fox News ^ | April 21, 2011 | John R. Lott Jr.
    Fox News analysis of Standard & Poor's warning the U.S. over debt. Video available at link.
  • Obama administration officials (privately) tried to keep S&P rating at ‘stable’

    04/20/2011 7:55:13 AM PDT · by Qbert · 24 replies
    Washington Post ^ | 4/19/2011 | Zachary A. Goldfarb
    The Obama administration privately urged Standard & Poor’s in recent weeks not to lower its outlook on the United States — a suggestion the ratings agency ignored Monday, two people familiar with the matter said. Treasury Department officials had been discussing with S&P whether the ratings agency should change its outlook on the United States to “negative” from “stable,” an indication that the country could lose its crucial AAA rating in coming years over its soaring debt levels. Treasury officials told S&P analysts that they were underestimating the ability of politicians in Washington to fashion a compromise to curb deficits,...
  • Too Much Attention To Moody's Swing

    12/15/2010 5:41:50 PM PST · by Kaslin
    IBD Editorials ^ | December 15, 2010 | Staff
    Tax Deal: The media are touting a rating agency's schizophrenic claim that keeping the Bush tax rates helps the economy, but hurts the country's credit standing. Are ratings firms even relevant anymore? Manhattan Institute senior fellow Nicole Gelinas, in her richly detailed analysis of the roots of the financial crisis, "After the Fall: Saving Capitalism from Wall Street — and Washington," pulls back the curtain and exposes the ugly reality of the once all-powerful credit ratings agencies Moody's, Fitch and Standard & Poor's. "Reliance on ratings agencies contravenes market principles," Gelinas warns. "The ratings-agency world is small and homogeneous, populated...
  • Moody's Worried US Tax Cuts Could Become Permanent(pay more taxes or get screwed?)

    12/07/2010 9:25:07 PM PST · by TigerLikesRooster · 39 replies
    Money News ^ | 12/07/10
    Moody's Worried US Tax Cuts Could Become Permanent Tuesday, 07 Dec 2010 01:37 PM Moody's Investors Service is worried the extension of U.S. tax cuts agreed by President Barack Obama and Republican leaders could become permanent, hurting U.S. finances and its credit ratings in the long run. Steven Hess, Moody's lead sovereign analyst for the United States, said on Tuesday doesn't foresee any change in the U.S. AAA ratings in the next 18 months to two years. He is, however, concerned about "what's going to happen in two years," when the extensions are set to expire again. "The timing two...
  • China downgrades US credit rating

    11/09/2010 9:04:47 AM PST · by The Comedian · 89 replies ^ | Nov. 9, 2010 10:08am | Tuneman
    Tuesday, November 09, 2010 10:08:03 AM (CH) Chinese rating agency Dagong Global Credit downgrades US credit rating due to QE program (update) - Chinese press - Cut long term US sovereign rating one notch to A+ from AA, with a negative outlook. - "The serious defects in the U.S. economy will lead to long-term recession and fundamentally lower the national solvency. The credit crisis is far from over in the United States and the U.S. economy will be in a long-term recession." Weaker dollar will hurt US ability to attract dollar capital reflow. "In essence, the U.S. government's move to...
  • France warns on credit rating(Keeping AAA would be a stretch)

    05/30/2010 5:34:53 PM PDT · by TigerLikesRooster · 9 replies · 315+ views
    Reuters ^ | 05/30/10 | David Stamp
    France warns on credit rating David Stamp LONDON Sun May 30, 2010 12:08pm EDT LONDON (Reuters) - France admitted on Sunday that keeping its top-notch credit rating would be "a stretch" without some tough budget decisions, following German hints that Berlin may resort to raising taxes to help bring down its deficit. Euro zone trade unions are preparing for possible confrontations in the coming week if governments impose austerity measures or labor reforms unilaterally. But ministers made clear they were ready to take unpopular steps to prevent the Greek debt crisis spreading to their economies, although doubts are growing about...
  • Sovereign ratings on UK, US, Japan under fire from credit investors

    05/12/2010 7:39:45 PM PDT · by TigerLikesRooster · 16 replies · 344+ views ^ | 05/12/10 | David Evans
    Sovereign ratings on UK, US, Japan under fire from credit investors Author: David Evans Source: Credit | 12 May 2010 /snip After Greece, Portugal and Spain suffered rating downgrades in April due to escalating fiscal problems, investors ask if the same standards are being applied to advanced economies. While there is a broad agreement among investors that credit rating agencies were justified in downgrading peripheral European sovereigns last month, investors are questioning why advanced economies such as the UK, the US and Japan – which face mounting fiscal problems of their own – have managed to retain their triple-A ratings....
  • Is America’s AAA Rating in Trouble?

    03/28/2010 12:17:48 PM PDT · by Conservative Coulter Fan · 28 replies · 879+ views
    The Heritage Foundation ^ | March 22nd, 2010 | Aleksey Gladyshev
    America’s current predicament is that it borrows money from countries or individuals to finance many of its expensive obligations, including financing the $862 billion stimulus bill as well as the wars in Iraq and Afghanistan. But what would happen if America had to pay higher interest rates on all future borrowing? This is the question that some people in the federal government have to ponder, as influential rating agencies such as Standard & Poor’s and Moody’s have both recently voiced their view that America’s AAA rating is not guaranteed or in fact even assured. The massive and growing debt obligation...
  • 5 credit score killers (lot of very useful info)

    03/23/2010 2:19:31 PM PDT · by SmartInsight · 75 replies · 2,880+ views
    CNN Money ^ | March 23, 2010 | Blake Ellis
    As banks shy away from making risky consumer loans, a mediocre credit history just won't cut it anymore. To get the best rates on mortgages, credit cards and auto loans, you need a killer score. Your FICO score is a numerical measure of your creditworthiness that ranges from 300 to 850. While there are a few different credit scoring systems available, it's the FICO score, created by the Fair Isaac Corporation, that most lenders look at when they check your credit. Lenders have already raised their standards by about 20 to 40 points this year, according to Barry Paperno, consumer...
  • Moody's warns nations to cut spending or risk AAA ratings

    03/15/2010 9:47:27 PM PDT · by americanophile · 11 replies · 458+ views
    Washington Post ^ | March 16, 2010 | Howard Schneider
    The United States and other top world economies need to make potentially painful government spending cuts or risk losing the high-grade credit ratings that have kept borrowing affordable, the Moody's rating agency said Monday. Outlining the dilemma faced by policymakers in the United States, Great Britain, Germany and France, Moody's said that debt levels in the four large credit-worthy economies had reached the point at which they are at risk of being downgraded -- a step that would drive up interest rates, increase borrowing costs and mark a turn in perceptions about the world economy. Economic recovery might ease the...
  • U.S. debt threatens to be overwhelming

    02/15/2010 11:48:41 PM PST · by ErnstStavroBlofeld · 18 replies · 720+ views
    The Washington Times ^ | 2/14/2010 | Tom Raum
    It's bad enough that Greece's debt problems have rattled global financial markets. In the world's largest economic and military power, there's a far more serious debt dilemma. For the U.S., the crushing weight of its debt threatens to overwhelm everything the federal government does, even in the short-term, best-case financial scenario -- a full recovery and a return to prerecession employment levels. The government already has made so many promises to so many expanding "mandatory" programs. Just keeping these commitments, without major changes in taxing and spending, will lead to deficits that cannot be sustained. Take Social Security, Medicare and...
  • S&P warns it may downgrade Japan (from AA to AA-)

    01/26/2010 6:48:19 AM PST · by TigerLikesRooster · 11 replies · 320+ views
    Market Watch ^ | 01/26/20
    S&P warns it may downgrade Japan By MarketWatch LOS ANGELES (MarketWatch) -- Standard & Poor's Ratings Services said Tuesday that it may downgrade Japan's sovereign credit ratings if data don't improve or if the government doesn't get its fiscal and economic house in order. The ratings agency said it's placed a negative outlook on Japan's AA sovereign long-term credit rating, saying it could issue a downgrade to AA- "if economic data remain weak and measures to boost medium-term growth are not forthcoming, given the country's high government debt burden and its weak demographic profile." The announcement, which came after the...
  • Spanish stocks drop as S&P cuts country outlook to negative

    12/09/2009 3:23:41 PM PST · by TigerLikesRooster · 12 replies · 361+ views
    Market Watch ^ | 12/09/09 | Barbara Kollmeyer
    Dec. 9, 2009, 11:20 a.m. EST Spanish stocks drop as S&P cuts country outlook to negative By Barbara Kollmeyer, MarketWatch MADRID (MarketWatch) -- Shares in Spain fell sharply on Wednesday after Standard & Poor's revised down its outlook on the country to negative from stable, saying it now expects a longer and deeper downturn here, just two days after warning Greece and Portugal over their own fiscal woes. S&P affirmed 'AA+' long-term and 'A-1+' short-term sovereign credit ratings, but said the situation in Spain appears to be worse than they thought in January when long-term debt lost its AAA rating....
  • U.S., Britain may test Aaa rating boundaries, Moody's warns

    12/08/2009 7:18:18 AM PST · by SeekAndFind · 2 replies · 394+ views
    Marketwatch ^ | 12/8/2009 | William L. Watts
    LONDON (MarketWatch) -- Credit-rating agency Moody's Investor Services on Tuesday warned that the United States and Great Britain may test the limits of their Aaa sovereign ratings due to deteriorating public finances. "These are the Aaa countries whose public finances are deteriorating considerably and may therefore test the Aaa boundaries, but which display, in our opinion, an adequate reaction capacity to rise to the challenge and rebound," wrote Pierre Cailleteau, managing director of Moody's sovereign risk group, in the report. Cailleteau divided the Aaa countries into three categories -- resistant, resilient and vulnerable. The United States and Great Britain both...
  • Moody's warning on California debt stuns state

    06/19/2009 12:43:52 PM PDT · by Kartographer · 44 replies · 2,493+ views
    Reuters ^ | 6/19/09 | Jim Christie
    Moody's decision to place California's general obligation debt on alert for a possible "multi-notch" downgrade stunned state officials.
  • UPDATE: California Rating Placed On Downgrade Watch By Moody's

    06/19/2009 10:24:05 AM PDT · by Kartographer · 10 replies · 442+ views ^ | 6/19/09 | Stan Rosenberg
    California's chances of borrowing in capital markets grew slimmer Friday as Moody's Investors Service warned that it could downgrade the economically and fiscally beleaguered state's bond ratings.
  • US could lose AAA credit rating

    05/22/2009 6:26:20 AM PDT · by Mozilla · 31 replies · 1,033+ views
    Ft Alpahville ^ | May 22, 2009 | Gwen Robinson
    Bill Gross, manager of the world’s biggest bond fund, warned on Thursday the US was “going the way of the UK” and will eventually lose its top AAA credit rating - a fear that had already spooked financial markets on Thursday and could keep the dollar, stocks and bonds under heavy selling pressure, reports Reuters. The US will face a downgrade in “at least three to four years, if that, but the market will recognise the problems before the rating services — just like it did today,” said Gross, co-chief investment officer of Pimco and manager of the Pimco Total...
  • Don't Treasure U.S. Treasuries [inflation, more deficit spending] [U.K. possible downgrade?]

    05/21/2009 2:20:45 PM PDT · by rabscuttle385 · 4 replies · 444+ views
    Why U.S. Treasuries look increasingly unattractive. BY TIERNAN RAY OOOF! It's a tough day for sovereign credit. Rating agency Standard and Poor's this morning lowered its outlook on the U.K.'s debt from Stable to Negative on concerns that the Kingdom's borrowing could reach 100% of its gross domestic product by 2013. This is a potential prelude to an eventual cut in the U.K.'s triple-A rating. The U.S. may not be as close to the U.K. at getting its credit spanked, but the U.S.'s ballooning deficits and heavy borrowing make U.S. Treasuries increasingly look unappealing.
  • S&P Lowers Britain's Debt Outlook

    05/21/2009 7:20:25 AM PDT · by reaganaut1 · 7 replies · 349+ views
    Wall Street Journal ^ | May 21, 2009 | Alistair MacDonald and Neil Shah
    Ratings agency Standard & Poor's shocked investors Thursday with a formal warning that the U.K. must get its finances in order or lose its coveted triple-A credit rating, underscoring the monumental challenges the country faces as it seeks to dig its economy out from under the wreckage of the financial crisis. U.K. stocks plunged and the pound slid against the dollar after S&P announced that it had changed its outlook for the U.K.'s credit rating to negative -- meaning that a downgrade, while not imminent, could come sometime in the next few years. S&P said it will revisit the U.K.'s...
  • Rated F for Failure

    03/17/2009 6:25:49 AM PDT · by TigerLikesRooster · 5 replies · 558+ views
    NYT ^ | 03/16/09 | JEROME S. FONS and FRANK PARTNOY
    Rated F for Failure By JEROME S. FONS and FRANK PARTNOY WHEN Standard & Poor’s, the bond-rating agency, lowered General Electric’s rating to AA+, from AAA, last week, many were shocked at the tarnishing of one of America’s most revered corporations. But the real scandal is how long it took S.&P. to make that minor change — and that the other major ratings firm, Moody’s, still hasn’t — even though G.E.’s dividend has been slashed by two-thirds and its stock price had fallen below $7, from nearly $40 a year ago. Why, more than a year into the crisis, do...
  • California's credit rating cut to lowest of all 50 states

    02/03/2009 6:07:36 PM PST · by John Jorsett · 28 replies · 959+ views
    Los Angeles Times ^ | Feb 3, 209
    California today was branded the worst credit risk of all 50 states, after Standard & Poor’s cut its rating on the state’s debt because of the budget impasse. S&P lowered its rating on the state’s $46 billion in general obligation bonds to "A" from "A-plus," citing "the state's inability to reach an agreement on a mid-year budget revision and its rapidly eroding cash position." Until now, California and Louisiana had been tied for last place, at "A-plus," on S&P’s state ratings list. Most states are rated either "AA" or "AAA." "At its current level, the rating generally recognizes our view...
  • S & P slightly lowers California's credit rating

    12/12/2008 9:10:11 AM PST · by NormsRevenge · 15 replies · 433+ views
    LA Times ^ | 12/12/08 | Tom Petruno
    California's credit rating was dinged Thursday by Standard & Poor's, which cited the state's worsening budget crisis. The firm's rating on $5 billion of short-term notes the state sold in October was cut one notch, from SP-1 to SP-2. S&P also warned that its A-plus rating on $46.6 billion of California general obligation bonds, which are long-term debt, might be lowered. With the state already tied with Louisiana for the lowest credit rating of all the states, a downgrade would leave California alone at the bottom. (Most states are rated AA or AAA.) S&P said its actions "reflect our opinion...
  • Government plans new credit, mortgage programs($800bn)

    11/25/2008 6:50:48 AM PST · by TigerLikesRooster · 23 replies · 1,106+ views
    AP ^ | 11/25/08 | JEANNINE AVERSA
    Government plans new credit, mortgage programs By JEANNINE AVERSA, AP Economics Writer 19 mins ago WASHINGTON – The government introduced a pair of new programs Tuesday that will provide $800 billion to help unfreeze the market for consumer debt and to make mortgage loans cheaper and more available.
  • Government to Unveil Consumer Credit Facility

    11/25/2008 5:10:19 AM PST · by markedmannerf · 103 replies · 4,971+ views
    Fox News ^ | 11/25/08 | Associated Press
    Washington--The government is working on a new loan facility to help companies that issue credit cards, make student loans and finance car purchases. The Treasury Department and the Federal Reserve will unveil the program Tuesday, according to people familar with the plan. They spoke on condition of anonymity because a formal announcement has yet to be made. Treasury Secretary Henry Paulson has said he plans to use a "relatively modest share" of the $700 billion financial bailout money to pay for the new program. It's the latest effort by the government to break through a dangerous credit clog that has...
  • Credit crunch for consumers (card rate goes up)

    11/24/2008 6:47:21 AM PST · by TigerLikesRooster · 82 replies · 1,862+ views
    Market Watch ^ | 11/23/08 | Andrea Coombes
    Credit crunch for consumers As card issuers hike rates, consumers forced to work harder to protect credit By Andrea Coombes, MarketWatch Last update: 1:36 p.m. EST Nov. 23, 2008 SAN FRANCISCO (MarketWatch) -- As credit-card issuers raise rates and fees and lower credit limits, consumers face higher-cost debt -- and more work maintaining their credit score. In some cases, banks' former darlings -- consumers who paid consistently and on time but let their balances ride -- now are being hit hardest, asked to stomach higher interest rates and fees or try their luck with different card issuers. For instance, some...
  • Goldman Sachs and Lehman Brothers face downgrading

    03/22/2008 4:12:29 AM PDT · by TigerLikesRooster · 11 replies · 777+ views
    Times of London ^ | 03/22/08 | Tom Bawden
    March 22, 2008 Goldman Sachs and Lehman Brothers face downgrading Tom Bawden in New York Profits at Goldman Sachs and Lehman Brothers could deteriorate significantly this year if the turmoil sweeping the capital markets persists, a leading research agency said yesterday. Standard & Poor's (S&P) gave warning that it might cut the credit ratings on both investment banks, lowering the outlook on Goldman and Lehman from “stable” to “negative”. That comment, which coincided with reports of looming job losses at Goldman, could result in higher borrowing costs and a fall in the banks' shares. S&P praised Goldman Sachs for producing...
  • The nagging worries at mighty GE

    02/17/2008 10:52:02 AM PST · by wcgo2 · 7 replies · 385+ views
    The Sunday Times of London ^ | 2-17-2008 | Ben Laurance
    THEY don’t come much more blue-chip than General Electric of the US. The company – valued at nearly $350 billion (£178 billion) – is almost like a nation state. It’s seen as the ultimate safe bet – powerful, genuinely global, diversified. And when the company produced its 2007 results last month, GE was able to boast record earnings. From jet engines to windpower turbines, from refrigerators to railway locomotives, GE has its finger in every industrial pie. And while other companies have been buffeted by the turbulence of the credit crunch, GE has apparently remained above it all. At the...
  • (New conservative government proves a blessing): Top credit rating for Sweden

    01/22/2007 11:36:44 PM PST · by WesternCulture · 27 replies · 646+ views ^ | 01/22/2007 | AFP
    I've said it before and I feel it ought to be said again and again: - Don't let anyone tell you Sweden is a Socialist paradise and an example of how socialism can be "successful". We've been moving towards Conservatism and Capitalism since the mid 1980's. Still much left to do, though. In any case, I feel optimistic. To begin with, we have a Conservative government that, obviously, know what it is doing. By the way, it ought to be noticed that many other parts of Europe are beginning to wake up out of their socialist slumber as well. Not...
  • California's credit rating improves; no longer nation's worst

    05/18/2006 8:15:10 PM PDT · by FairOpinion · 6 replies · 388+ views
    SFC ^ | May 17, 2006 | AARON C. DAVIS
    A Wall Street bond house raised California's credit ratings Wednesday, breaking the state's long-standing tie with hurricane-ravaged Louisiana for the worst credit marks in the nation. Standard & Poor's raised its rating on the state's general obligation bonds from "A" to "A+," and its rating on lease-supported debt from "A-" to "A." Standard & Poor's top bond rating is AAA. "The improvement being seen in California can be traced back to strong economic growth in almost all sectors and geographic regions of the state, as well as a spike in stock market and housing-related capital gains tax revenues," wrote Standard...

    05/12/2005 3:28:34 AM PDT · by TigerLikesRooster · 44 replies · 1,299+ views
    Financial Sense Online ^ | 05/09/05 | Rob Kirby
    THE LEGACY COSTS OF DOING BUSINESSOn the back of both Ford [NYSE: F] and General Motors [NYSE: GM] having their credit ratings reduced to junk status this past week ? I thought it might be appropriate to take a closer look at why?Some would have us believe that North American automakers simply don’t build them like they used to! Well, being a proud owner of a 1980 Cutlass Supreme, with less than 100k original kilometers on the clock, I would concur with this line of thought. But then again, who really does build them the way they used to anyway? ...