Moody’s

Moody’s Investors Service downgraded the debt ratings of 15 major international banks and securities firms on Thursday, a move that could cost the banks billions of dollars in extra collateral…U.S banks that were downgraded included: Bank of America, Citigroup, Goldman Sachs, JPMorgan, and Morgan Stanley. “All of the banks affected by today’s actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities,” Moody’s said in a statement. “However, they also engage in other, often market leading business activities that are central to Moody’s assessment of their credit profiles,” the firm added. “These activities can provide important ‘shock absorbers’ that mitigate the potential volatility of capital markets operations, but they also present unique risks and challenges.” [CNBC, related]

  • 13 Feb 2012 at 8:03 PM

Moody’s Treads Where No Other Rating Agency Dare

“Moody’s Investors Service downgraded six European nations and became the first ratings firm to warn the U.K.’s rating could be at risk, citing the area’s weakening ability to implement measures aimed at reducing debt…Where Moody’s did deviate from recent actions by other ratings firms was in changing the outlook for the U.K. There had been no indication the U.K.’s outlook was necessarily in danger based on how other ratings firms view U.K.’s debt. Both S&P and Fitch have a stable outlook on their U.K. rating.” [WSJ]

  • 11 Nov 2011 at 5:17 PM

Moody’s May Downgrade Penn State

On account of recent events. Read more »

Don’t Ask To Speak With Brian Moynihan Today

He may be in a mood. Read more »

  • 19 Jul 2011 at 2:51 PM

Moody’s Puts 5 States On Notice

Apparently Maryland, South Carolina, New Mexico, Tennessee and Virginia should be preemptively quaking in their boots. Read more »

  • 14 Jul 2011 at 1:49 PM

Credit Ratings Agencies May Want to Tread Carefully

It turns out that when you say things like “let’s not pay back our debts, what’s the worst thing that can happen?,” one thing that does happen is that the credit ratings agencies start worrying that you might not pay back your debts. Weird. From Reuters:

Standard & Poor’s has warned lawmakers privately that it would downgrade the country’s debt if the Treasury Department is forced to prioritize payments because Congress does not raise the debt limit, a congressional aide said on Thursday.

That is, cutting off Social Security checks could avoid a technical default but not a downgrade. Moody’s yesterday threw out its own threat of pre-default downgrade.

You know who else had ratings agencies all up in their shit threatening downgrades just because of massive fiscal and political-will problems? Europe. And they have some ideas on how to deal. Short version: insert fingers in ears, close eyes, hum noisily. Longer version:
Read more »

Although Moody’s fully expected political wrangling prior to an increase in the statutory debt limit, the degree of entrenchment into conflicting positions has exceeded expectations. The heightened polarization over the debt limit has increased the odds of a short-lived default. If this situation remains unchanged in coming weeks, Moody’s will place the rating under review. [WSJ]