Keyword: moodys

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  • China Official: It's Too Late, U.S. Already 'Defaulting'

    06/11/2011 3:40:49 PM PDT · by Tolerance Sucks Rocks · 21 replies
    FOX News ^ | June 10, 2011 |
    As lawmakers scramble to cut a budget deal and avoid defaulting on U.S. debt, the head of a top Chinese rating agency claims it's too late. Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken. "In our opinion, the United States has already been defaulting," Guan was quoted as saying, according to AFP. China, likewise, has long come under criticism for allowing its currency to weaken. But while Dagong Global is known for being tough on the U.S., Guan's words carry extra...
  • Moody's sounds alarm over U.S. debt limit and deficits (On the heels of S&P outlook downgrade)

    06/03/2011 7:51:52 AM PDT · by SeekAndFind · 13 replies · 1+ views
    Reuters ^ | 06/03/2011 | By Daniel Bases and Donna Smith
    Ratings agency Moody's warned on Thursday it would consider cutting the United States' coveted top-notch credit rating if the White House and Congress do not make progress by mid-July in talks to raise the debt limit. Treasury Secretary Timothy Geithner, seeking to convince Congress to increase his borrowing authority and prevent a government default, went to Capitol Hill to press his case in a 45-minute meeting with first-term lawmakers. "I am confident that two things are going to happen this summer," Geithner told reporters after the meeting. "One is that we are going to avoid a default crisis and we...
  • Moody's Issues Credit Warning to U.S. Amid Political Wrangling Over Debt Limit

    06/02/2011 5:13:05 PM PDT · by Son House · 14 replies · 1+ views ^ |
    Moody's Investor's Service said it would place the government's Aaa rating under review for a possible downgrade due to the "very small but rising risk" of a short-lived default if the White House and Republican leaders can't agree on raising the nation's debt ceiling, which has already hit $14.3 trillion. Moody's announcement followed the lead set by S&P, which announced in April that it was downgrading the U.S. credit outlook to negative over the nation's mounting debt. The news was just the latest sign of the massive financial problems facing the nation as the economy's recovery sputters. ... Rep. Dave...
  • Moody's Downgrades Greece To Just A Few Notches Above Default: From B1 To Caa1, Outlook Negative

    06/01/2011 3:39:11 PM PDT · by dynachrome · 10 replies
    Zero Hedge ^ | 6-1-11 | Tyler Durden
    Moody's Investors Service has today downgraded Greece's local and foreign currency bond ratings to Caa1 from B1, and assigned a negative outlook to the ratings. The rating action concludes the review for possible downgrade that the rating agency initiated on 9 May 2011.
  • Moody's Issues Hysterical "Warning" About Downgrading US Credit

    02/24/2011 8:25:38 AM PST · by SeekAndFind · 14 replies
    Business Insider ^ | 02/24/2011 | Joe Weisenthal
    This is actually pretty funny. Moody's is out with a new comment about the debt ceiling fight (via @zerohedge). The ratings agency expects the debt ceiling to be passed, but... they say that if it looks like the US might default, America's pristine credit rating would have to be placed "under review." Seriously!? OBVIOUSLY if a default appeared likely, then the US rating should be under review. In fact, it should be downgraded. And in fact, it should be downgraded a lot, since a default is basically the worst thing possible for bond investors. And in fact, Moody's should probably...
  • US bonds may be downgraded

    01/14/2011 2:56:28 AM PST · by Scanian · 7 replies
    The American Thinker Blog ^ | January 14, 2011 | Rick Moran
    Moody's is warning that unless we change our ways, our bonds will be downgraded. This doesn't mean it will happen or happen anytime soon. We're not going to slide to junk bond status tomorrow, although if Obama can't be stopped, who knows where our rating will end up. But if you listen to these guys, they don't sound real confident we'll be able to change. The Wall Street Journal: "Moody's Investors Service said in a report on Thursday that the U.S. will need to reverse the expansion of its debt if it hopes to keep its 'Aaa' rating. 'We have...
  • S&P, Moody's Warn On U.S. Credit Rating

    01/13/2011 6:17:57 AM PST · by Zakeet · 21 replies
    Wall Street Journal ^ | January 13, 2011 | Mark Brown and Nathalie Boschat
    Two leading credit rating agencies on Thursday cautioned the U.S. on its credit rating, expressing concern over a deteriorating fiscal situation that they say needs correction. Moody's Investors Service said in a report Thursday that the U.S. will need to reverse an upward trajectory in the debt ratios to support its triple-A rating. "We have become increasingly clear about the fact that if there are not offsetting measures to reverse the deterioration in negative fundamentals in the U.S., the likelihood of a negative outlook over the next two years will increase," said Sarah Carlson, senior analyst at Moody's. Standard &...
  • In The News Today

    12/19/2010 11:11:06 AM PST · by Razzz42 · 5 replies
    Jim Sinclair's Mineset ^ | December 19, 2010 | Jim Sinclair
    Jim Sinclair’s Commentary Moody’s had taken comfort in their role of the short of the euro play. They took protection in Federal court from suits over the accuracy of ratings based on free speech. Legally that is looking shaky but they still have Federal Court to take comfort in. The second they downgrade US credit, they have signed their litigation death warrant. They know this and might be playing a game of chicken.
  • 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 says Spain banking outlook "negative"

    12/14/2010 6:50:38 AM PST · by TigerLikesRooster · 18 replies
    Yahoo!Finance ^ | 12/13/10
    Moody's says Spain banking outlook "negative" Katell Abiven, 12:30, Monday 13 December 2010 Credit rating agency Moody's issued a negative outlook on Spain's banks on Monday and warned that total economic losses could reach 176 billion euros. New York (Xetra: A0DKRK - news) -based Moody's Investors Service said it was maintaining a negative view for the next 12-18 months because it expected Spanish banks' capital, profits and access to finance to remain weak. The verdict comes as Spain battles to convince nervous markets that its finances are solid and there is no reason to fear it will need an Irish-style...
  • 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...
  • Moody's Says Extension of Tax Cuts Won't Lead to U.S Downgrade

    11/17/2010 11:13:41 AM PST · by facedodge · 3 replies
    BusinessWeek ^ | 11/15/2010 | Cordell Eddings
    Moody's Investors Service Inc. said a permanent extension of the tax cuts first enacted under former President George W. Bush won't lead to a downgrade of the nation's credit rating....frpa
  • Dear Uncle (Sam) Sucker (the facts on Warren Buffett's Op-Ed in NYT)

    11/17/2010 9:22:38 AM PST · by Fred · 10 replies
    Big Picture Blog ^ | 111710 | Barry Ritholtz
    For many years, I’ve been a fan of Warren Buffett’s long term approach to value investing. Understanding the value of a company, regardless of its momentary stock price, is a great long term investing strategy. But it pains me whenever I read commentary from Buffett that glosses over reality or is somehow self-serving. His OpEd in the NYT today – Pretty Good for Government Work – paints an artificially rosy picture of the Bailout, ignores the negatives, and omits his own financial interest in government actions. What might he have written if Sir Warren was dosed with some sodium pentothal...
  • Moody's: Next California budget deficit likely to be $12 billion -- or more

    10/19/2010 6:56:24 PM PDT · by NormsRevenge · 12 replies
    LA Times ^ | 10/19/10 | Shane Goldmacher
    Moody's, one of the nation's big credit-rating agencies, issued a report Tuesday that said California's next budget deficit is expected to be "at least $12 billion" after state lawmakers and Gov. Arnold Schwarzenegger approved a spedning plan that "relies heavily on one-time measures, optimistic revenue assumptions and the receipt of funds, some of which may not materialize."
  • Moody's says US needs debt plan to keep rating-DJ

    07/29/2010 9:45:09 AM PDT · by Cheap_Hessian · 5 replies · 1+ views
    Reuters ^ | July 29, 2010 | Vivianne Rodrigues
    The U.S. government needs to elaborate a credible plan to address its soaring debt in order to maintain its Aaa credit rating, Moody's Investors Service's told Dow Jones newswire.
  • Did The Credit Agencies Just Go Extinct? (Dodd-Frank in Action)

    07/21/2010 9:45:54 AM PDT · by mojito · 27 replies · 1+ views
    ZeroHedge ^ | 7/21/2010 | Tyler Durden
    The recently passed Donk (Dodd-Frank) Finreg abomination, which nobody has yet read is finally starting to disclose some of the interesting side effects of its harried passage. Such as that the rating agencies may have suddenly become extinct. As the WSJ's Anusha Shrivastava discloses: "The nation's three dominant credit-ratings providers have made an urgent new request of their clients: Please don't use our credit ratings." The Moodies of the world suddenly have good reason to not want their name appearing next to those three A letters (at least in Goldman CDO and bankrupt sovereign cases) out there: "The new law...
  • Moody's cuts Greece government ratings to junk

    06/14/2010 10:45:38 AM PDT · by Kartographer · 37 replies · 1,761+ views
    Reuters ^ | 6/14/10 | Ciara Linnane
    Moody's Investors Service on Monday downgraded Greece government bond ratings into junk territory, citing the risks in the euro zone/IMF rescue package for the debt-laden country. The agency downgraded the rating by four notches to Ba1, placing it one notch into junk status. The outlook is stable. Moody's also downgraded Greece's short-term issuer rating to not-prime from Prime-1.
  • Outlook remains stable on U.S. AAA rating: Moody's

    05/25/2010 8:28:58 PM PDT · by mlocher · 6 replies · 300+ views
    Reuters via ^ | May 25, 2010 | Reuters
    NEW YORK (Reuters) - The outlook on the United States' coveted AAA credit rating remains stable, though the government's financial strength is weakening due to its support for the financial system, Moody's Investors Service said on Tuesday. Structural fundamentals, political stability and favorable economic prospects are supporting the stable outlook, despite rising debt ratios, Moody's said. The United States' finances have been substantially worsened by the credit crisis, recession, and government spending to address these shocks, Moody's said. "The ratios of general government debt to gross domestic product and to revenue are deteriorating sharply, and after the crisis they are...
  • Hey, Moody's, Why Didn't You Tell Us About The SEC "Wells Notice" In March?

    05/10/2010 9:07:23 AM PDT · by george76 · 5 replies · 542+ views
    Business Insider ^ | May. 10, 2010 | Henry Blodget
    Moody's stock (MCO) is getting slammed this morning on the shocking news that the SEC has hit it with a "Wells Notice" that could lead to the SEC's preventing the company from acting as a rating agency. How did the market learn about the Wells Notice? Because Moody's was apparently forced to disclose it in its latest SEC filing. (The company tried to hide the news deep in the 10Q, even burying it within a broader paragraph, but investors found it). So here's our question: If the Wells Notice is material enough for Moody's to have to disclose it in...
  • The race to kill the ratings agencies (legal noose tightening against S&P and Moody's)

    04/30/2010 7:37:47 AM PDT · by SeekAndFind · 9 replies · 374+ views
    Fortune ^ | 04/30/2010 | Ken Stier
    The legal noose is tightening around credit ratings agencies, for practices past and future. Just this week a federal court decision allowed a fraud case against Moody's and Standard & Poor's to move into discovery, dismissing the defendants' claim that their ratings are essentially editorial opinion and hence protected by the First Amendment. This particular case -- in which plaintiffs charge the deal involved the "shortest-lived Triple A investment fund in the history of corporate finance" -- is just one of roughly a dozen investor lawsuits, making its way through the courts. There are others: California, for example, is asking...
  • Moody's Downgrades Los Angeles From Aa2 To Aa3

    04/07/2010 11:49:20 AM PDT · by Cheap_Hessian · 14 replies · 520+ views
    ZeroHedge Blog ^ | April 7, 2010 | Tyler Durden
    It is all those damn CDS speculators' fault! Just as we suspected over a month ago, and before Lockyer's silly missives, it was only a matter of time before muni "speculators" start getting a greater portion of the blame. In the meantime, as we have been saying for about, oh, 12 months, munis are about to implode. Here is Moody's, actually being just a year behind the curve on this one. From Moody's NEW YORK, Apr 7, 2010 -- Moody's Investors Service has downgraded to Aa3, from Aa2, our rating on the City of Los Angeles' general obligation bonds. At...
  • Moody's Sees US Rating Under Pressure After $3.8 Trillion Budget

    02/02/2010 5:53:43 PM PST · by Cheap_Hessian · 5 replies · 195+ views
    ZeroHedge Blog ^ | February 2, 2010 | Tyler Durden
    If there is one thing the rating agencies can be proud of, it is... well, there isn't one. And if after yesterday's mindboggling budget proposal which sees the deficit increasing to $9 trillion in 10 years, coupled with the fact that GSE liabilities now should be counted as part of overall US obligations, neither S&P nor Moody's could muster enough courage to at least put the US on even the weakest form of downgrade review, one can say that after 2 years of pretending otherwise, both rating agencies are still as [clueless/corrupt] as always. Then one barely visible silver lining,...
  • U.S. Rating Under Pressure Unless Deficits Cut, Moody’s Says

    02/02/2010 12:52:28 PM PST · by optiguy · 17 replies · 1,108+ views
    Business Week ^ | February 2, 2010 | Inyoung Hwang
    Feb. 2 (Bloomberg) -- Moody’s Investors Service Inc. said the U.S. government’s Aaa bond rating will come under pressure in the future unless additional measures are taken to reduce budget deficits projected for the next decade.
  • Moody’s Joins Others in Cutting Debt Rating on Greece

    12/23/2009 11:39:50 AM PST · by UAConservative · 3 replies · 261+ views
    NY Times ^ | December 23, 2009 | David Jolly
    Moody’s Investors Service on Tuesday became the third major credit rating agency to cut its debt rating on Greece, citing the government’s crumbling finances. But stocks and government bonds rallied in Athens amid relief that the downgrade was not worse. Greece, facing a government budget deficit next year of more than 12 percent of gross national product, has come under pressure from bondholders and the European Union to bring its finances under control. The Socialist prime minister, George A. Papandreou, has promised to fix the economy even in the face of resistance from his own supporters. But he has not...
  • Moody's Puts $143 Billion Of Jumbo RMBS On Downgrade Review

    12/19/2009 4:29:15 AM PST · by TigerLikesRooster · 7 replies · 396+ views
    Zero Hedge ^ | 12/18/09
    Moody's Puts $143 Billion Of Jumbo RMBS On Downgrade Review Submitted by Tyler Durden on 12/18/2009 16:31 -0500 ABX ABX Prime Bonds C Case-Shiller Cash Cumulative Losses default Default Rate Defaults Delinquencies Delinquency Rates Downgrade Factors Foreclosures Government-Sponsored Enterprise Housing Investment Grade loans losses Moody's Moodys mortgage Mortgage Backed Securities overhang Performance prices recovery risk RMBS securities Structured Finance Unemployment US Wall Street With the ABX Prime index stirring those willing to take risk on prime residential exposure, Moody's came out with a report demonstrating why there likely will be a recurring offer on the index. In short: Moody's Investors...
  • Drowning in Red Ink -- Will America lose its triple-A credit rating?

    12/12/2009 3:11:38 PM PST · by reaganaut1 · 7 replies · 637+ views
    Weekly Standard ^ | December 12, 2009 | Irwin M. Stelzer
    It took the Obama administration less than a year to reduce the United States from the country with a currency that is considered a safe haven when international storms threaten, to one that is warned by a rating agency that unless it mends its profligate ways it will lose the triple-A credit rating it has had since U.S. government debt was first assessed in 1917. Who would have thought when Barack Obama took the oath of office some eleven months ago that Dubai World, Greece, the UK, and America would attract the attention of the rating agencies in the same...
  • Moody's downgrades Illinois debt ratings (At least there is CA)

    12/10/2009 6:59:58 AM PST · by C19fan · 3 replies · 401+ views
    Reuters ^ | December 9, 2009 | Staff
    Moody's cut other Illinois ratings, affecting about $24 billion of outstanding debt, including the state's Build Illinois sales tax revenue bonds, also cut to A2 from A1. The downgrade gave Illinois the second lowest U.S. state rating from Moody's, with California having the lowest at Baa1, a Moody's spokesman said. Moody's said Illinois has yet to take action to tackle a structural budget gap of more than $11 billion, equal to about 35 percent of its expenditures.
  • 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 to lower US credit in 2013

    12/08/2009 6:24:07 AM PST · by scooby321 · 28 replies · 1,724+ views
    Fox News | 12/8/2009 | self
    Stuart Varney was just on Fox and said Moody's will lower the United States bond rating for the first time ever in 2013 with current spending plans.
  • Moody’s: Pension Strains Put Pressure on Ratings

    11/06/2009 11:38:17 PM PST · by UAConservative · 4 replies · 341+ views
    Financial Planning ^ | November 6, 2009 | Yvette Shields
    The fiscal strain of deteriorating pension funding levels on local and state governments could contribute to downgrades in the next several years, especially among those governments that entered the recession with poor funding ratios or have little flexibility in their funding requirements, a new report from Moody’s Investors Service warns. In the near term, the impact of dwindling investment returns as a result of the market downturn is broad and adds yet another layer of fiscal stress on governments already faced with faltering tax revenues, heightened demand for social services, and pressure to scale back pension contributions to balance their...
  • Moody’s: Pension Strains Put Pressure on Ratings

    11/06/2009 9:20:34 AM PST · by TigerLikesRooster · 2 replies · 187+ views
    Financial Planning ^ | 11/06/09 | Yvette Shields
    Moody’s: Pension Strains Put Pressure on Ratings By Yvette Shields, Bond Buyer November 6, 2009 The fiscal strain of deteriorating pension funding levels on local and state governments could contribute to downgrades in the next several years, especially among those governments that entered the recession with poor funding ratios or have little flexibility in their funding requirements, a new report from Moody’s Investors Service warns. In the near term, the impact of dwindling investment returns as a result of the market downturn is broad and adds yet another layer of fiscal stress on governments already faced with faltering tax revenues,...

    10/18/2009 9:23:31 AM PDT · by Marty62 · 18 replies · 748+ views
    McClatchy Newspapers ^ | 10/18/2009? | Kevin G Hall
    As the housing market collapsed in late 2007, Moody's Investors Service, whose investment ratings were widely trusted, responded by purging analysts and executives who warned of trouble and promoting those who helped Wall Street plunge the country into its worst financial crisis since the Great Depression. » read more
  • Drop Moody’s Into the Volcano

    10/02/2009 8:04:23 PM PDT · by Palin Republic · 6 replies · 571+ views
    Newsweek ^ | Sep 30, 2009 | Michael Hirsh
    Why haven't the rating agencies that were complicit in the subprime-mortgage securities scandal suffered the fate of Arthur Andersen? Despite some moves in Congress to change their behavior, U.S. authorities are still treating the agencies with extreme gentleness. Moody's and Standard & Poor's, the two giants of the industry, are still around despite causing the loss of hundreds of billions of dollars by badly rating subprime-mortgage-backed securities. Not only that, they are basically doing business the same way, taking fat fees from the investment banks whose securities they rate. In testimony before the House Committee on Oversight and Government Reform...
  • Moody’s Expects US CMBS Delinquencies to Reach 5-6% (by the end of this year)

    07/15/2009 10:18:19 AM PDT · by TigerLikesRooster · 2 replies · 350+ views
    Research Recap ^ | 07/14/09
    Moody’s Expects US CMBS Delinquencies to Reach 5-6% Moody’s now expects the aggregate rate of delinquencies among US Commercial Mortgage-Backed Securities to reach 5% to 6% by the end of this year. Moody’s latest CMBS Delinquency Tracker (DQT) records the aggregate rate of delinquencies among US CMBS conduit and fusion loans at 2.67%, based on data through the end of June. This represents a 40 basis point increase from the prior month’s 2.27% rate. By comparison, the DQT was 0.46% a year ago and is now 245 basis points above the low of 0.22% measured in July 2007. "Hotels saw...
  • Moody's cuts Calif rating, budget talks press on ($72b CA debt rated as junk)

    07/15/2009 10:13:43 AM PDT · by TigerLikesRooster · 20 replies · 747+ views
    Reuters ^ | 07/14/09 | Jim Christie
    Moody's cuts Calif rating, budget talks press on By Jim Christie Tue Jul 14, 9:36 pm ET SAN FRANCISCO (Reuters) – Moody's cut its rating on Tuesday on about $72 billion of California's debt to near junk status, citing the state's budget crisis, but a top lawmaker said a deal to close a $26.3 billion gap was near. Moody's Investors Service in a statement said it cut the state's general obligation debt by two notches to Baa1, or three notches above speculative "junk" status and the rating may suffer further downgrades because of a growing risk to the state's ability...
  • 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.
  • Moody’s downgrades Berkshire Hathaway

    04/08/2009 9:01:44 PM PDT · by TigerLikesRooster · 19 replies · 836+ views
    FT ^ | 04/09/09 | Justin Baer
    Moody’s downgrades Berkshire Hathaway By Justin Baer in New York Published: April 9 2009 00:41 | Last updated: April 9 2009 00:41 Warren Buffett’s Berkshire Hathaway lost its triple-A grade from Moody’s Investors Service, the very ratings firm in which the billionaire holds a 20 per cent stake. The downgrade, which follows Fitch Ratings’ one-notch cut last month, comes as Berkshire seeks to rebound from its worst year since the “Sage of Omaha” took control of the former textiles maker in 1965. Moody’s dropped Berkshire two notches, to double-A2. “Today’s rating actions reflect the impact on Berkshire’s key businesses of...
  • Moody's announces California bond downgrade

    03/20/2009 1:02:34 PM PDT · by SmithL · 6 replies · 707+ views
    Sacramento Bee ^ | 3/20/9 | Kevin Yamamura
    Moody's Investors Service downgraded California's general-obligation bonds to A2 from A1, the New York-based agency announced Friday. Moody's became the third ratings house to downgrade California's general-obligation bonds this year, following similar moves by Standard & Poor's and Fitch Ratings. State Treasurer Bill Lockyer is planning to sell $4 billion in general-obligation bonds to replenish the state's Pooled Money Investment Account and help pay for construction projects around the state. California now has the distinction of being the lowest rated state by all three major ratings services. Only Louisiana, with which California was formerly tied, comes closest. The downgrades likely...
  • Moody’s predicts default rate will exceed peaks hit in Great Depression

    02/26/2009 10:02:21 PM PST · by Flavius · 19 replies · 1,310+ views
    LONDON, Feb 27 — A bigger proportion of non-investment grade companies will go bust in the US and overseas in the coming years than during the Great Depression, according to Moody's, one of the world's foremost experts on credit. In what will be seen by many as die-cast confirmation that the world economy is plummeting towards an economic and corporate implosion of unprecedented proportions, Moody's said it anticipated a tidal wave of defaults was approaching. It said that in the coming months more than 15 per cent of speculative-grade bonds and loans — all but the most highly-rated — would...
  • Moody's predicts default rate will exceed peaks hit in Great Depression

    02/26/2009 4:05:22 PM PST · by bruinbirdman · 29 replies · 1,062+ views
    The Telegraph ^ | 2/26/2009 | Edmund Conway
    In what will be seen by many as die-cast confirmation that the world economy is plummeting towards an economic and corporate implosion of unprecedented proportions, Moody's said it anticipated a tidal wave of defaults was approaching. It said that in the coming months more than 15pc of speculative-grade bonds and loans - all but the most highly-rated - would default on their debts. This peak is even higher than the peak reached in 1933, when bank after bank throughout America was collapsing, taking hoards of other companies with them. Back then, the default rate peaked at 15.4pc; moreover these companies...
  • Moody's warns it may cut California's debt rating

    01/22/2009 9:23:11 AM PST · by NormsRevenge · 25 replies · 736+ views
    LA Times ^ | 1/22/09 | Tom Petruno
    California, tied with Louisiana for the lowest credit rating among the states, now is in more danger of claiming rock-bottom all for itself. Moody’s Investors Service today warned that it might downgrade California’s general obligation bond rating, currently A1, because of the state’s "significant budgetary shortfall, impending liquidity crisis, and lack of legislative solutions." Louisiana also is rated A1. All other states are rated higher on Moody’s scale, typically AA or AAA. Moody’s shift follows a similar warning on California’s debt rating by its rival, Standard & Poor’s, on Dec. 11. S&P also has California tied with Louisiana for last...
  • What's next, a ban on stock sales?

    09/29/2008 1:14:35 AM PDT · by library user · 16 replies · 537+ views
    MSN Money ^ | Sept. 29, 2008 | by Bill Fleckenstein
    ** EXCERPT ** The Securities and Exchange Commission has a list, and it's checking it twice. It's a compendium of nearly 1,000 companies the so-called watchdog has now pronounced off-limits to short-selling. If this do-not-short list weren't such a travesty, it would be hilarious. Among the companies the SEC wants to "protect" are the ones -- Moody's and McGraw-Hill, to name just two -- that did such a horrendous job rating the mortgage paper that helped cause this debacle in the first place. In the end, SEC Chairman Chris Cox and friends will discover that this will turn out to...
  • Ambac, MBIA fall as Moody's warns it may cut again

    09/21/2008 11:56:47 PM PDT · by TigerLikesRooster · 4 replies · 245+ views
    Market Watch ^ | 09/19/08 | Alistair Barr
    Ambac, MBIA fall as Moody's warns it may cut again Ratings agency says losses on subprime mortgage securities to be much worse By Alistair Barr, MarketWatch Last update: 5:55 p.m. EDT Sept. 19, 2008 SAN FRANCISCO (MarketWatch) -- Ambac Financial and MBIA Inc. shares fell on Friday after Moody's Investors Service warned it may downgrade the beleaguered bond insurers again. Despite short selling being banned on Ambac starting Friday, shares of the two companies fell 42% and 8% respectively during afternoon trading. Moody's put the ratings of Ambac's and MBIA's main bond insurance units on review for a possible downgrade....
  • US senator urges SEC to act fast on Moody's probe

    05/22/2008 5:26:52 PM PDT · by LomanBill · 2 replies · 102+ views
    Forbes/cp, ^ | 22 May 2008 | John Poirier
    The Financial Times business newspaper reported Wednesday that Moody's wrongly assigned triple-A ratings to complex European debt products called constant proportion debt obligations, or CPDOs. Moody's said it rated 44 European CPDO tranches totaling about $4 billion. It said it also hired a law firm to conduct an external investigation into why the coding error in a computer model caused the products to be given a rating four notches higher than they merited.
  • Moody's puts NY Times 'Baa1' rtg on review for possible cut (Dinosaur Media DeathWatch™)

    03/05/2008 3:11:31 PM PST · by jdm · 7 replies · 89+ views
    CBS Marketwatch ^ | March 05, 2008 | Staff
    ** EXCERPT ** SAN FRANCISCO (MarketWatch) - Moody's Investors Service said late Tuesday it placed the New York Times Co.'s Baa1 senior unsecured and Prime-2 commercial paper ratings on review for possible downgrade.
  • Puerto Rico Government Shutdown: Bonds Become Junk

    05/08/2006 2:36:26 PM PDT · by rrstar96 · 30 replies · 770+ views
    (English-language translation) Moody's degraded Puerto Rico's credit rating today, thus aggravating the crisis that has left 90,000 public employees in the island without a job. "This action reflects Puerto Rico's tense financial situation, the continuing political conflict, and the lack of agreement to [take] the necessary measures to end years of financial deterioration by the government," Moody's stated in a release. The majority of the bonds, which were [originally] classified "Baa2", decreased to "Baa3", which is the limit for bonds [considered] healthy for investment. However, according to Secretary of the Governor's Office Aníbal José Torres, the ratings firm degraded some...
  • Moody's cuts Knight Ridder, McClatchy to junk (Dinosaur Media Extinction Alert)

    04/20/2006 3:19:42 PM PDT · by abb · 13 replies · 938+ views
    Rooters ^ | April 20, 2006 | Staff
    NEW YORK, April 20 (Reuters) - Moody's Investors Service on Thursday cut both Knight Ridder Inc. (KRI.N: Quote, Profile, Research) and McClatchy Co. (MNI.N: Quote, Profile, Research) to junk status, citing McClatchy's acquisition of its bigger rival newspaper publisher. In mid-March, No. 9 U.S. newspaper publisher McClatchy said it would buy Knight-Ridder Inc. for $4.5 billion to become the second-largest U.S. newspaper chain. Downgrades, particularly to junk, tend to raise a company's borrowing costs. Moody's cut both Knight Ridder and McClatchy's bond ratings to the top junk level of "Ba1" from the bottom investment-grade rating of "Baa3." The new combined...
  • CalPERS gets top rating

    01/16/2005 11:33:50 PM PST · by nickcarraway · 7 replies · 315+ views
    San Francisco Chronicle ^ | Sunday, January 16, 2005 | Kathleen Pender
    What's wrong with this picture? This month, Gov. Arnold Schwarzenegger called the state's pension system "another financial train on another track to disaster" and proposed replacing the state's defined-benefit plans with a defined contribution for state employees hired after June 30, 2006. He also proposed a carrot and stick to entice current employees to opt out of the system starting next year. Yet last week, Moody's Investors Service gave the California Public Employees' Retirement System its highest, Aaa credit rating for a new business CalPERS is entering: Using its pension-fund assets to guarantee municipal bonds issued by states, counties and...
  • Arnold Schwarzenegger, California Alchemist

    05/27/2004 8:56:49 AM PDT · by bigsky · 17 replies · 269+ views
    Human Events Online ^ | May 27, 2004 | Carol Platt Liebau
    In the final days of Governor Gray Davis' tenure, it seemed like the sun had set on California once and for all. After his 2002 reelection, Davis had announced that California was confronted with a deficit of $35 billion -- caused in large part by a gargantuan spending increase of 36% during his years in office, and an explosion of hiring in the public sector, whose unions were among Davis' most reliable supporters. Among the people of California, there was an increasing sense that perhaps the state's problems were insurmountable and that the state itself, controlled by Davis and a...
  • Arrest of Russian Billionaire Captures Attention of Germany

    11/01/2003 7:41:54 AM PST · by OESY · 1 replies · 170+ views
    New York Times ^ | November 1, 2003 | MARK LANDLER
    FRANKFURT - The shock waves from last week's arrest of the Russian billionaire Mikhail B. Khodorkovsky have spread widely, but not evenly, through the club of international investors. Here in Germany, Russia's largest trading partner, large-scale investors said that they remained committed to the country. That is hardly surprising, given that they have poured billions of euros into energy-distribution deals, pipeline projects and even equity investments in Russian companies. But experts say would-be investors within Europe, particularly midsize companies, are likely to shelve their plans until the legal storm surrounding Mr. Khodorkovsky and his oil company, Yukos, dies down. "This...