Published: 10 March, 2012, 03:49
Edited: 10 March, 2012, 21:00
Moody's Investors Service considers Greece to have defaulted per its default definitions. The announcement comes despite Athens reaching a deal with private creditors for a bond exchange that will shave €107 billion from its €350 billion debt.
The agency pointed out that even though 85.8 per cent of the holders of Greek-law bonds had signed to the deal, the exercise of collective action clauses that Athens is applying to its bonds will force the remaining bondholders to participate.
Eventually, the overall cost to bondholders, based on the present net value of the debt, will be at least 70 per cent of the investment, Moody's explained.
"According to Moody's definitions, this exchange represents a 'distressed exchange,' and therefore a debt default," the US rating firm said. "This is because (i) the exchange amounts to a diminished financial obligation relative to the original obligation, and (ii) the exchange has the effect of allowing Greece to avoid payment default in the future."
Ahead of the debt deal, Moody's had already slashed Greece's credit grade to its lowest level, "C," and so there was no impact on the rating.
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Showing posts with label Moody's. Show all posts
Showing posts with label Moody's. Show all posts
10 March 2012
17 February 2012
Moody’s Weighs Rating Cuts for Major Banks
By JULIA WERDIGIER
February 16, 2012, 6:21 am
Shannon Stapleton/ReutersMoody’s Investors Service indicated it could cut Morgan Stanley’s credit ratings by as much as three levels.LONDON — Moody’s Investors Service has put Goldman Sachs, Morgan Stanley, Deutsche Bank, UBS and more than 100 other financial institutions on notice.
Citing increasingly challenging market conditions, the credit rating agency said it would review its grades for 114 banks based across Europe, as well as eight other financial institutions based elsewhere, including JPMorgan Chase, Bank of America and Nomura.
Moody’s indicated it could cut some credit ratings by as much as three levels as it weighed the risks to the banks’ investment banking models and large capital market exposures.
“The combination of changed operating conditions and increased regulatory requirements and restrictions has diminished these firms’ longer-term profitability and growth prospects,” Moody’s said in the statement, which was released on Wednesday after markets closed in New York.
In a separate statement from London, Moody’s said it was reviewing its ratings for banks based in European countries, including Italy, Spain and Britain. It cited the prolonged euro crisis, concerns about government debt and risks linked to large capital market businesses as reasons.
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February 16, 2012, 6:21 am
Shannon Stapleton/ReutersMoody’s Investors Service indicated it could cut Morgan Stanley’s credit ratings by as much as three levels.Citing increasingly challenging market conditions, the credit rating agency said it would review its grades for 114 banks based across Europe, as well as eight other financial institutions based elsewhere, including JPMorgan Chase, Bank of America and Nomura.
Moody’s indicated it could cut some credit ratings by as much as three levels as it weighed the risks to the banks’ investment banking models and large capital market exposures.
In a separate statement from London, Moody’s said it was reviewing its ratings for banks based in European countries, including Italy, Spain and Britain. It cited the prolonged euro crisis, concerns about government debt and risks linked to large capital market businesses as reasons.
MORE
14 February 2012
SilverDoctors: Moody's Expected to Downgrade Citi, JPM, BOA, Well...
SilverDoctors: Moody's Expected to Downgrade Citi, JPM, BOA, Well...: Moody's is reportedly on the verge of 2-3 NOTCH DOWNGRADES of all the too-big-to-fail US banks. Bank of America, JP Morgan, Citigroup, Mor...
SilverDoctors: Moody's Downgrades Spain, Portugal, Italy, Places ...
SilverDoctors: Moody's Downgrades Spain, Portugal, Italy, Places ...: So much for waiting till Friday night after the markets close to announce big downgrades. Moody's has just dropped the hammer on the Euroz...
20 January 2012
Moody’s Warns of Further Downgrades: Big Banks
By Moran Zhang: Subscribe to Moran's RSS feed
January 19, 2012 5:55 PM EST
Moody's Investors Service warned Thursday that many European banks and global investment banks are likely to see their credit ratings further downgraded by the agency.
"The expected decline of bank ratings reflects the acceleration of interrelated pressures on the banking sector since the second half of 2011," said Greg Bauer, Moody's global banking managing director, in a statement.
"These pressures most immediately affect global capital markets intermediaries and European banks," Bauer said.
January 19, 2012 5:55 PM EST
Moody's Investors Service warned Thursday that many European banks and global investment banks are likely to see their credit ratings further downgraded by the agency.
"The expected decline of bank ratings reflects the acceleration of interrelated pressures on the banking sector since the second half of 2011," said Greg Bauer, Moody's global banking managing director, in a statement.
"These pressures most immediately affect global capital markets intermediaries and European banks," Bauer said.
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