Credit Rating Archives - IREF Europe

China admits it has massive shadow debts – creating a headache for the EU and UK, and a threat to their public credit ratings

Bob Lyddon — Wed, 20 Nov 2024 06:06:37 +0000

Introduction The stimulus package for the Chinese economy, presaged by the People’s Bank of China in late September, has disappointed in its size and detail, but it has achieved something…

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Greensill Capital case damages the UK’s credit standing on the world stage

Bob Lyddon — Wed, 29 Nov 2023 20:53:11 +0000

Introduction The UK government has cancelled its guarantees to a private lender – Greensill Capital – under the UK’s coronavirus support, without the obligation that was guaranteed having been discharged.…

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Bank stress tests or how governments are trying to fool the market

IREF — Thu, 22 Sep 2011 16:26:42 +0000

European governments are under pressure to shore up the banking sector in the face of growing worries about the industry's capital levels, access to funding and earning power in the context of global crisis. Indeed, weakened by their bad sovereign debt holdings, several banks are scrutinized by the credit rating agencies and two of them, the French Société Générale and Crédit Agricole have recently been downgraded by Moody’s.

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Standard & Poor’s has cut Italy’s credit rating

IREF — Tue, 20 Sep 2011 11:19:23 +0000

The eurozone’s third-largest economy is being sucked deeper into the sovereign debt crisis, since one of the major credit rating agencies downgraded yesterday its credit rating. S&P downgraded Italy to "A/A-1" from a "A+/A-1+" grade because of "Italy's weakening economic growth prospects", with a negative outlook, meaning further downgrades are possible. The move – S&P’s first downgrade of Italy since 2006 – places S&P’s rating on Italy three notches below that of Moody’s, the rating agency that many had expected to cut first.

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A new world

IREF — Tue, 09 Aug 2011 17:51:24 +0000

The world is probably going to change after the recent downgrading by Standard&Poor’s of the US debt rating from triple A to AA+. Beyond the disturbing loss of the landmark Treasuries represented for global finance, what is important here is the awareness that even the biggest world economy is not allowed anymore to do just anything with public spending. The message is clear. The current crisis is actually giving the opportunity to put the political genie back in the bottle. It is now time to grasp this chance, but will political decision makers have the will to do it?

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French banks under review

IREF — Mon, 20 Jun 2011 12:18:01 +0000

The credit rating agency Moody’s said it might downgrade the credit ratings of three of the largest French banks because of their exposure to the Greek debt crisis. According to…

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Japanese sovereign rating downgraded

IREF — Fri, 28 Jan 2011 16:41:53 +0000

For the first time since 2002, the credit rating of Japan has been downgraded to AA-. By doing this, the Standard and Poor’s rating agency has placed Japan on the…

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The European Commission is promoting centralized supervision of credit rating agencies

IREF — Sat, 19 Jun 2010 16:10:12 +0000

The Commission's proposal, which amends Regulation 1060/2009, will now pass to the EU Council of Ministers and the European Parliament for consideration. If adopted, the new rules would be expected to come into force during 2011. The Commission has already compelled CRAs that would like their credit ratings to be used in the EU to apply for registration.

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Greece fears bankruptcy

IREF — Fri, 11 Dec 2009 08:36:11 +0000

The Fitch rating agency on Tuesday downgraded Greece's long-term debt ratings as well as those on four of the country's largest banks, describing prospects for Greek public finances as negative. Greece is now exposed to the risk of losing the small amount of credibility it still has in front of its creditors. The concerns are growing about its ability to pay its huge public debt, estimated to 110% of GDP and budget deficit above 12.7% of GDP. A look at the evolution of the external debt of Greece is illustrating the concern of credit rating agencies and international financial markets:

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