Ireland: Fitch Has No Idea What It's Talking About

Author:
Publish date:
Updated on

Earlier today, Fitch downgraded Ireland three notches to a triple-B plus rating, citing "weaker prospects and greater uncertainty regarding the economy as a result of the intensification of the financial crisis," noting that Ireland's sovereign credit profile is no longer consistent with a high investment grade rating." According to the Emerald Isle, this is bull shit.

A source close to the government contradicted Fitch. "Contrary to the Fitch analysis," the person said, "the exchequer deficit has not deteriorated further in the past year but has stabilized."

Fitch Downgrades Ireland [WSJ]

Related

News

Fitch Has Something To Say About Fudgie

"Manageable" but "raises questions." Fitch Ratings has downgraded JPMorgan Chase & Co.'s (JPM) Long-term Issuer Default Rating (IDR) to 'A+' from 'AA-' and its Short-term IDR to 'F1' from 'F1+'. Fitch has placed all parent and subsidiary long-term ratings on Rating Watch Negative. Fitch has also downgraded JPM's viability rating (VR) to 'a+' from 'aa-' and placed it on Rating Watch Negative. In addition, Fitch affirmed JPM's '1' support rating and 'A' support rating floor. The rating actions follow JPM's disclosure yesterday of a $2 billion trading loss on its synthetic credit positions in its Chief Investment Office (CIO). The positions were intended to hedge JPM's overall credit exposure, particularly during periods of credit stress. Fitch views the size of loss as manageable. That said, the magnitude of the loss and ongoing nature of these positions implies a lack of liquidity. It also raises questions regarding JPM's risk appetite, risk management framework, practices and oversight; all key credit factors. Fitch believes the potential reputational risk and risk governance issues raised at JPM are no longer consistent with an 'AA-' rating. Fitch Cuts JPMorgan Ratings [Reuters]