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29 November 2011
S&P Cuts Credit Ratings On 37 Global Banks
If Europe wobbles any harder, the global money center portion of the financial sector may slide into the sea. Or more likely onto the backs of the unsuspecting public.
I will be surprised if they do not try and rally stocks in the face of this to put the brave face on and whistle past the graveyard once again.
S&P Cuts Credit Ratings On 37 Global Banks
I will be surprised if they do not try and rally stocks in the face of this to put the brave face on and whistle past the graveyard once again.
Wall Street Journal
S&P Ratings Recalibration Brings Cuts to 37 Banks
By Drew Fitzgerald
November 29, 2011, 5:12 P.M. ET.
Standard & Poor's Ratings Services on Tuesday downgraded dozens of large financial institutions, including Bank of America Corp., Barclays PLC and Citigroup Inc., citing a new methodology that reflects weaker confidence in governments' willingness and ability to bail out banks in trouble.
The widely expected move (by whom? the wiseguys who were shorting bank stocks today? the financial news anchors were all shocked. - Jesse) didn't signal a change of any of the banks' individual credit metrics as much as a revision to the assumptions that had previously bolstered them. The new criteria affected 37 banks, most of which were immediately downgraded if not put on negative credit watch.
S&P earlier in November had promised to revise many financial institutions' ratings to better reflect how banks' creditworthiness is linked to the health of the economies in which they operate.
A broad swath of the European banking sector is suffering as the euro zone's sovereign-debt crisis widens, retarding global economic growth. S&P is also the only one of the top three ratings companies that has downgraded the credit status of the U.S., giving the country a double-A-plus rating in August.
S&P's latest downgrades come after rival Moody's Investors Service said late Monday that it would review junior debt ratings across the European banking sector, also based on the lower chances of government support if banks fail.
Moody's had already factored out any support for junior bank debt issued in countries such as the U.K., Denmark, Ireland and Germany, where state support has receded either through regulatory or legislative measures. The negative review dealt another blow to the banks' least-protected creditors.
S&P downgrades 37 global banks on new reviewing methodology
(Barcelona) - S&P rating agency has just downgraded 37 global banks. Goldman, BofA, Citigroup, Morgan Stanley, BNY Mellon are amongst the cuts based on a new methodology. Japanese and UK banks cut or outlook lowered as well.
In the official statements it could read: "Standard & Poor's Ratings Services today said it reviewed its ratings on 37 of the largest financial institutions in the world by applying its new ratings criteria for banks, which were published on Nov. 9, 2011." EUR/USD came down near 1.3300 on the news.
S&P Ratings Recalibration Brings Cuts to 37 Banks
By Drew Fitzgerald
November 29, 2011, 5:12 P.M. ET.
Standard & Poor's Ratings Services on Tuesday downgraded dozens of large financial institutions, including Bank of America Corp., Barclays PLC and Citigroup Inc., citing a new methodology that reflects weaker confidence in governments' willingness and ability to bail out banks in trouble.
The widely expected move (by whom? the wiseguys who were shorting bank stocks today? the financial news anchors were all shocked. - Jesse) didn't signal a change of any of the banks' individual credit metrics as much as a revision to the assumptions that had previously bolstered them. The new criteria affected 37 banks, most of which were immediately downgraded if not put on negative credit watch.
S&P earlier in November had promised to revise many financial institutions' ratings to better reflect how banks' creditworthiness is linked to the health of the economies in which they operate.
A broad swath of the European banking sector is suffering as the euro zone's sovereign-debt crisis widens, retarding global economic growth. S&P is also the only one of the top three ratings companies that has downgraded the credit status of the U.S., giving the country a double-A-plus rating in August.
S&P's latest downgrades come after rival Moody's Investors Service said late Monday that it would review junior debt ratings across the European banking sector, also based on the lower chances of government support if banks fail.
Moody's had already factored out any support for junior bank debt issued in countries such as the U.K., Denmark, Ireland and Germany, where state support has receded either through regulatory or legislative measures. The negative review dealt another blow to the banks' least-protected creditors.
S&P downgrades 37 global banks on new reviewing methodology
(Barcelona) - S&P rating agency has just downgraded 37 global banks. Goldman, BofA, Citigroup, Morgan Stanley, BNY Mellon are amongst the cuts based on a new methodology. Japanese and UK banks cut or outlook lowered as well.
In the official statements it could read: "Standard & Poor's Ratings Services today said it reviewed its ratings on 37 of the largest financial institutions in the world by applying its new ratings criteria for banks, which were published on Nov. 9, 2011." EUR/USD came down near 1.3300 on the news.