Standard & Poor’s Ratings Agency has downgraded Italy one step as the EU nation’s economy continues in a downward spiral.
S&P said the continued weakness of the Italian economy was the reason behind the cut from BBB+ to BBB. The ratings agency said that their expectation of the Italian economy had downgraded to a 1.9% contraction, significantly worse than previously forecasts. Continue reading
The British Pound is suffering losses across the world markets after the announcement by credit house Moody’s of a downgrade in the country’s credit. Continue reading
Standard and Poor’s has surprised economists by raising Greece’s credit rating six levels from “selective default” to “B-minus”.
S&P stated the continued efforts of Eurozone countries to help Greece stay in the Euro and the austerity measures taken by the Greek government to eliminate excessive spending. Continue reading
The European Stability Mechanism, created in October as a permanent agency of the EU, has already had its credit rating downgraded by Moody’s. Continue reading
Ratings agency Fitch announced that it has made major downgrades to Argentina because they believe the nation is rapidly heading into default.
The nation’s long-term credit rating fell 5 notches from B to CC and the short term rating from B to C. C is the lowest rating a country can fall before they go into economic default. Continue reading
In a blow to the already beleaguered Eurozone economy, France has been downgraded in its credit status by Moody’s.
The country’s debt downgraded one position from AAA to AA1 and has kept a negative outlook. The negative outlook means that it’s very likely France could see another downgrade to their rating. The lower rating results in higher interest rates for borrowing costs hampering international investment. Continue reading
In a major blow to Spain’s economy, ratings group Standard & Poor’s lowered the country’s credit rating to BBB-, one level above junk status, warning that other downgrades were possible.
The country is expected to be asking for a bailout in the midst of drastic spending cuts, tax increases and youth unemployment over 50%. Continue reading
Credit ratings agency Moody’s has issued a statement threatening to cut the United States debt rating if there is no debt deal by government officials to cut the overall debt to GDP ratio. If no deal is reached by the end of the 2013 Congressional legislative session. Continue reading
Ratings firm Finch has cut the rating of the country of Cyprus to junk status. The cut is believed to be in response to Cyprus banks holding much of the real estate debt of Greece.
Fitch states that Cyprus will need at least 4 billion euros to support its banks on top of 1.8 billion euros needed to recapitalize its lender Cyprus Popular Bank. The bank needs and the junk rating will make it almost impossible for the country to borrow from international markets. Continue reading
Spain’s economic woes took another hit when credit agency Moody’s cut the country’s bond rating three notches to Baa3. The rating is just one notch above classifying Spanish bonds as “junk bonds.”
The credit dip was attributed directly to the country’s 100 billion euro bailout from fellow euro zone countries that was approved over the weekend. Lenders have been stating concern for Spain’s future in the euro zone as a result of their continuing banking woes. Continue reading