UK Credit Rating Downgraded by Moody's amid Growth Concerns

THE GUARDIAN: Ratings agency cites weakening economy, Brexit woes and coronavirus shocks

Credit ratings agency Moody’s has downgraded Britain’s credit status, citing a decline in economic strength in the wake of the coronavirus pandemic and continued Brexit uncertainty.

With the government struggling to contain a second wave and ministers under pressure to sanction extra spending to protect businesses and jobs, Moody’s lowered the UK’s sovereign debt rating by one notch to Aa3 from Aa2.

The ratings agency said it expected that the public finances would worsen as a result of the pandemic, though it expected the overall debt burden to stabilise next year, leading it to drop the “negative outlook” attached to the rating to one of “stable”. » | Phillip Inman | Friday, October 16, 2020

Turkey Ratings May Be Cut to Junk by Moody's

July 18 -- Hans Humes, chief executive officer at Greylock Capital, discusses the possibility of Moody's cutting Turkey's ratings to junk and what it means for investors. He speaks to Bloomberg's Scarlet Fu, Joe Weisenthal and Oliver Renick on "What'd You Miss."

Zypern-Methode: Moody's rechnet mit Euro-Rettern ab

SPIEGEL ONLINE: Die Rating-Agentur Moody's geht nach der Zypern-Rettung hart mit den Verantwortlichen der Euro-Zone ins Gericht. Deren Krisenmanagement sei stümperhaft gewesen, ihre Selbstsicherheit fehl am Platze. Das Antasten der Bankeinlagen könne sich als gefährlicher Präzedenzfall herausstellen.

London - Die Regierungen der Euro-Zone laufen nach Ansicht von Moody's Gefahr, sich bei der Bewältigung der Schuldenkrise zu überschätzen. Ihr Vorgehen bei der Zypern-Rettung sei stümperhaft gewesen, insgesamt wirke sich die dabei gewählte Strategie negativ auf die Kreditwürdigkeit der Mitglieder des Währungsraums aus. Dass die Sparer einen Beitrag zur Sanierung der Banken leisten müssen, könnte als gefährlicher Präzedenzfall aufgefasst werden, sagte Moody's-Experte Bart Oosterveld in einem Interview der Nachrichtenagentur Reuters.

Offenbar seien die Politiker auch nach ihrem ungeschickten Vorgehen im Fall Zyperns davon überzeugt, ein Übergreifen der Krise auf weitere Euro-Länder verhindern zu können. "Diese Zuversicht könnte fehl am Platze sein", warnte Oosterveld. So könnten auch die Anleger in anderen Schuldenstaaten der Euro-Zone aus Angst um ihre Ersparnisse ihre Konten plündern, weil sie - wie auch zahlreiche Analysten - davon ausgehen, dass das Beispiel bei künftigen Krisen Schule machen könne. » | fdi/Reuters/dpa | Mittwoch, 27. März 2013

From Stable to Negative: Moody's Cuts Outlook for Germany's Top Rating
SPIEGEL ONLINE INTERNATIONAL: The debt crisis is threatening Germany's top credit rating. Moody's changed its outlook for Germany, the Netherlands and Luxembourg to negative from stable late on Monday. The German Finance Ministry said the country would remain an anchor of stability in the 17-nation euro zone.

Moody's Investors Service on Monday cut its outlook for Germany's creditworthiness to "negative" from "stable," but confirmed the country's triple-A rating.

Moody's also cut its outlook for the Netherlands and Luxembourg, which also have triple-A ratings, to negative from stable. Finland kept its stable outlook.

The ratings agency said the move was due to growing uncertainty caused by the debt crisis.

It said there was an increased chance that Greece could leave the euro zone, which "would set off a chain of financial sector shocks ... that policymakers could only contain at a very high cost."

It also warned that Germany and other countries rated AAA might have to increase support for ailing countries such as Spain and Italy. The burden of that support would fall most heavily on the euro zone's top-rated states, it said. » | cro -- with wire reports | Tuesday, July 24, 2012

Moody's Cuts Credit Ratings on 15 Major Banks
LOS ANGELES TIMES: Moody's Investors Service has lowered the ratings of some of the world's largest banks, including Bank of America, JPMorgan Chase, Citigroup and Goldman Sachs.

The ratings agency said late Thursday that the banks were downgraded because their long-term prospects for profitability and growth are shrinking. » | Associated Press | Thursday, June 21, 2012

Related »

Debt Crisis: Moody's Downgrade of Britain's Banks to Hit Families
THE DAILY TELEGRAPH: Home owners and businesses face having to pay higher interest rates following a downgrade in the credit ratings of Britain’s biggest banks, analysts warned on Thursday.

Moody’s, a leading international ratings agency, on Thursday night cut its scores for Barclays, Lloyds and Royal Bank of Scotland because of the eurozone crisis.

Senior politicians warned the banks not to use the downgrade as an excuse to charge more for borrowing on the high street.

The downgrade coincided with a warning from the CBI, Britain’s biggest business group, that the fragile economic recovery was at risk of being “choked off by a lack of finance”.

Credit ratings help determine what banks must pay to borrow money on international markets. The lower the rating, the higher the interest rates they pay and the more collateral they must offer. » | James Kirkup, Deputy Political Editor | Thursday, June 21, 2012

Moody's Cuts Ratings of Some German Banks
REUTERS.COM: Moody's Investors Service cut the credit ratings of several German banks on Wednesday, citing increased risk of further shocks emanating from the euro zone debt crisis and their limited loss-absorption capacity.

"As a result, the long-term debt and deposit ratings for six groups and one German subsidiary of a foreign group have declined by one notch, while the ratings for one group were confirmed," it said. » | Reporting by Ian Chua; Editing by Paul Tait and Edwina Gibbs | Wednesday, June 06, 2012

Credit Agency Warns British Government
Moody's slaps negative outlook on Britain's triple-A rating, saying eurozone crisis is intertwinned the country's fortunes.

Moody's Issues Credit Warnings on Nine European Countries Including the UK
THE GUARDIAN: Negative outlook for Austria, France and the UK. Italy, Malta, Portugal, Spain, Slovakia and Slovenia have ratings cut

Britain's AAA credit rating was thrown into doubt after the ratings agency Moody's said the ongoing euro crisis and a credit squeeze on the banking sector put the country at a higher risk of defaulting on its debts.

Moody's said that countries including the UK, France and Italy would be put on negative watch after citing "uncertainty" over Europe's handling of its ongoing debt crisis.

The possible loss of the UK's much coveted triple-A status will be a bitter blow for the chancellor George Osborne who has staked his reputation on distancing Britain from the ailing eurozone.

Riots and looting on the streets of Athens highlighted the confusion at the highest levels of the European political establishment over how to deal with the mounting debts faced by Greece. Brussels rejected handing over €130bn without further commitments from the Athens parliament and proposals for further cuts to be implemented this year.

Osborne was expected to stick to his aim of reducing Britain's "structural deficit" by 2017 when he stands up in parliament next month to deliver his third budget since the coalition took power in 2010.

But the verdict of Moody's will add to the pressure from opposition MPs and many economists on him to change course. Moody's said it was concerned that he would miss previous targets to cut the deficit by 2015.

The AAA rating is the highest awarded to a country and allows it to borrow at the lowest interest rates. » | Dominic Rushe and Phillip Inman | Monday, February 13, 2012

THE GUARDIAN: UK austerity v US stimulus: divide deepens as eurozone cuts continue: The emphasis in Europe is on fiscal rigour and slashed budgets, but there is a growing awareness such policies are not working » | Phillip Inman, Ian Traynor in Brussels and Dominic Rushe in New York | Tuesday, February 14, 2012

Moody's Puts Britain on Negative Credit Outlook
THE DAILY TELEGRAPH: Britain has been threatened with the loss of its AAA credit rating in the most serious challenge yet to the Coalition on the economy.

Moody’s, a ratings agency, last night said the outlook for the UK’s creditworthiness is now negative, warning that weak economic growth threatens Government plans to reduce the deficit.

The “high risk of further shocks” within the eurozone that would hit the UK could also cost Britain its AAA status, the agency said.

The agency’s analysis will electrify the political debate about economic policy, with Labour likely to argue that the Government’s policies are strangling economic growth. » | James Kirkup, Deputy Political Editor | Tuesday, February 14, 2012

Moody's: Eurokrise kann auch britisches Top-Rating gefährden
REUTERS DEUTSCHLAND: London - Die Top-Bonität Großbritanniens ist nach Einschätzung der Ratingagentur Moody's auch von der Krise in der Eurozone bedroht.

Die Bemühungen der Regierung um einen ausgeglichenen Haushalt könnten durch weitere Schocks für die Wirtschaft untergraben werden, erklärte Moody's am Dienstag.

Bislang genießt Großbritannien das Top-Rating Aaa, und der Ausblick wird von Moody's mit stabil bewertet. Die Fähigkeit des Landes, zusätzliche Belastungen für den Haushalt zu kompensieren, habe sich aber verschlechtert. Der Handlungsspielraum für Großbritannien sei geringer geworden, sagte Moody's-Analystin Sarah Carlson der Nachrichtenagentur Reuters. » | Reuters | Mittwoch 21. Dezember 2011

Druck auf Euro-Zone: Ratingagentur Moody's stuft Belgien herab

KRONE: Wegen der Schuldenkrise in Europa hat die Ratingagentur Moody's die Kreditwürdigkeit Belgiens herabgestuft. Moody's begründete den Schritt am Freitag mit der Tatsache, dass es Euro-Ländern mit einem relativ hohen Schuldenstand wie Belgien zunehmend schwer falle, sich an den Märkten Geld zu beschaffen. Kurz zuvor hatte bereits die Konkurrenzagentur Fitch einer Reihe von Euro-Staaten mit einer Senkung ihrer Bonitätsnote gedroht, damit wächst der Druck auf die Euro-Zone weiter.

In der vergangenen Woche hatte bereits Standard & Poor's damit gedroht, die Ratings fast aller Euro-Mitglieder zu senken. Nun preschte Moody's vor und senkte die Note für Belgien um zwei Stufen auf "Aa3". Zudem setzte die Agentur den Ausblick auf "negativ". Damit könnte eine weitere Herabstufung Belgiens binnen zwei Jahren folgen. Die belgische Regierung lehnte eine Stellungnahme zu dem Downgrade ab. » | AG/red | Samstag 17. Dezember 2011

Moody's abaisse la note de Chypre
LE FIGARO: L'agence de notation Moody's Investors Service a abaissé vendredi la note de Chypre de deux crans, au motif que le gouvernement devra sans doute soutenir le secteur bancaire l'an prochain pour le protéger de son exposition à la dette grecque.

L'agence américaine a ramené la note souveraine de Chypre de Baa1 à Baa3, soit un cran seulement au-dessus de la catégorie spéculative. Cette nouvelle note a été placée sous revue pour un éventuel nouveau déclassement. [Source: Le Figaro.fr économie] | avec Reuters | vendredi 04 novembre 2011

Sarkozy kämpft um Bestnote: Frankreichs Rating-Sorgen verunsichern Euro-Zone
SUEDDEUTSCHE ZEITUNG: Die Ratingagentur Moody's bezweifelt, ob das verschuldete Frankreich seine Top-Bewertung weiter behält. Doch weil bald Präsidentschaftswahlen sind, verzichtet Nicolas Sarkozy wohl auf durchgreifende Reformen. Sollte Frankreich sein AAA verlieren, hätte das heftige Folgen für den Euro-Rettungsschirm - und damit für Deutschland. Die Krise dringt nach Kerneuropa vor.

Wenn sich an diesem Wochenende die Staats- und Regierungschefs der Europäischen Union zu ihrem Gipfel treffen, ist die Tagesordnung lang und das überwölbende Motto eindeutig: Es geht um die Zukunft Europas. Doch daneben geht es auch um eine persönliche Zukunft - die von Nicolas Sarkozy. » | Von Johannes Aumüller | Dienstag 18. Oktober 2011

Euro Fear as Spain and Italy's Debt Ratings Are Downgraded
THE GUARDIAN: British banks and building societies lose rating while pressure mounts on EU to restore faith in single currency

The eurozone crisis intensified on Friday when Spain and Italy were downgraded by the ratings agency Fitch, heightening fears over the health of Europe's banks.

Fitch's move came at the end of a day which had already seen 12 UK banks and building societies downgraded by the rival agency Moody's and amid speculation about co-ordinated European action to bolster the finances of the continent's banks by next weekend.

The euro fell against most major currencies, piling fresh pressure on European politicians to restore confidence in the single currency. Germany's Angela Merkel said Europe needed to find a solution for its banks by 17 October. Analysts from Capital Economics estimate the total financial package may top €200bn (£172bn).

Merkel and Nicolas Sarkozy of France are due to meet in Berlin on Sunday to discuss the crisis, with bank recapitalisation expected to be at the heart of their negotiations.

George Osborne attempted to distance UK banks from the crisis, despite speculation that there might need to be a fresh capital injection into British institutions, particularly Royal Bank of Scotland. He said: "People ask me how are you going to avoid Britain and the British taxpayer bailing out banks in the future. This government is taking steps to do that … I'm confident British banks are well capitalised, they are liquid, they are not experiencing the kinds of problems some of the banks in the eurozone are experiencing at the moment." » | Jill Treanor and Patrick Wintour | Friday, October 07, 2011

Moody's Cuts Ratings on RBS and Lloyds
THE INDEPENDENT: Britain's beleaguered banks and building societies were dealt another blow today after a debt agency said the decreased likelihood of Government backing made them less credit-worthy.

Lloyds Banking Group, Santander UK, Royal Bank of Scotland, Co-operative Bank, Nationwide and seven smaller building societies saw their credit ratings slashed by Moody's Investor Service.

The move - which triggered a fall in banking shares on the London Stock Exchange - means the cost of borrowing for the affected financial institutions is likely to increase.

RBS, which saw its shares drop more than 3%, also came under pressure after a report in the Financial Times suggested it could require a further bailout from the Government.

The bank said it was "disappointed" that Moody's had not acknowledged its progress in strengthening its finances since 2008.

Moody's stressed its review did not reflect a deterioration in the financial strength of the banking system or the Government.

The move reflects a shift in Government policy to transfer risk from taxpayers to creditors, rather than deepening problems within the banks. » | PA | Friday, October 07, 2011

MAIL ONLINE: Confidence in UK Banking Rocked: Doubts over strength of government’s support » | James White | Friday, October 07, 2011

Italy's Credit Rating Slashed Amid Eurozone Warnings

THE INDEPENDENT: Moody's lowered its rating on Italy's bonds by three notches on today, saying it saw a "material increase" in funding risks for eurozone countries with high levels of debt and warning that further downgrades were possible.

The agency downgraded Italy to A2 from Aa2, a lower rating than it holds on Estonia and on a par with Malta and kept a negative outlook on the rating.

The euro pared gains against the dollar and Japanese yen immediately following the announcement which comes after Moody's rival Standard and Poor's cut its rating on Italy by one notch to A/A-1 on Sept. 19.

The cuts underline growing investor concern about the eurozone's third largest economy, which is now firmly at the centre of the debt crisis and dependent on help from the European Central Bank to keep its borrowing costs under control.

"The negative outlook reflects on[-]going economic and financial risks in Italy and in the euro area," Moody's said in a statement.

"The uncertain market environment and the risk of further deterioration in investor sentiment could constrain the country's access to the public debt markets," it said. » | Reuters | Wednesday, October 05, 2011

Moody's Cuts French Banks, Eurobond Talk Lifts Markets
REUTERS: Moody's cut the credit ratings of two French banks on Wednesday because of their exposure to Greece's debt, highlighting growing risks to Europe's financial sector from a deepening euro zone sovereign debt crisis.

But the euro and European stocks were lifted by an announcement by the head of the European Commission that it would soon present options for issuing a common euro zone bond, despite huge political hurdles especially in Germany.

The ratings agency's one-notch downgrade of Societe Generale and Credit Agricole came hours before the leaders of Greece, France and Germany were to hold a video conference on measures to head off a potential Greek default, which has prompted rising global alarm. » | Lionel Laurent and Luke Baker | PARIS/BRUSSELS | Wednesday, September 14, 2011

Gefahr für Weltwirtschaft
Die Rating-Agentur Moody's hat mit einer Herabstufung der Kreditwürdigkeit der USA gedroht. Sie kündigte an, den USA die Bestnote "Triple A" zu entziehen. Künftig sollen sie nur noch beim Level "Double A" eingestuft werden. Einschätzungen von SF-Wirtschaftsexperte Reto Lipp

Moody's senkt Bonitätsnote Griechenlands weiter - um drei Stufen
REUTERS DEUTSCHLAND: New York - Die Ratingagentur Moody's hat die Bonitätsnote Griechenlands am Mittwoch um drei Stufen auf Caa1 gesenkt.

Moody's begründete den Schritt mit dem wachsenden Risiko, dass es der griechischen Regierung nicht gelingen werde, die Finanzlage ohne eine Umschuldung zu stabilisieren. » | Reuters | Donnerstag, 02. Juni 2011