spain downgraded by Moody's
Discussion
hornetrider said:
How do the ratings break down elster, my good man? Is there a wide range?
Yeah there are loads, the down rating wouldn't be significant if there wasn't such a huge amount of borrowing done within these countries, especially spain.If you think we borrow £1 Trillion, the a slight change in interest rate is very significant to how much you pay back.
Those countries with poor ratings IE below A3 for Moodys, generally are those who don't have as large an economy. There are a couple of other major Credit Rating people, Moodys are the last to react.
Moodys Ratings
Standard & Poors Ratings
I believe these are the main ones, but someone may correct me as this isn't my field. I have just been doing some reading up on these.
Edited by elster on Thursday 30th September 10:58
elster said:
Fittster said:
Do the rating agencies have any credibility anymore?
How do you mean?If you think all the credit agencies downgrading a country has no iact, you would be wrong.
elster said:
V88Dicky said:
I don't get it.
What is not to get?Spain AA1
Ireland AA2
Portugal A1
Greece BA1
All looks peachy for the Euro zone.
I haven't looked at other ratings.
Fittster said:
elster said:
Fittster said:
Do the rating agencies have any credibility anymore?
How do you mean?If you think all the credit agencies downgrading a country has no iact, you would be wrong.
Say you do a personal credit rating score and get 1000, then you get the best interest rates
500 and you will get limited rates
100 and you get sky high rates.
That is all they do.
They don't predict the future, they base someones rating on previous trends. Much the same as you, Experian don't reduce your credit rating on your future ability to pay and say we can't offer you a mortgage as in 10 years time you will go on a spending spree causing you to have no money and o bankrupt.
Murcielago_Boy said:
elster said:
V88Dicky said:
I don't get it.
What is not to get?Spain AA1
Ireland AA2
Portugal A1
Greece BA1
All looks peachy for the Euro zone.
I haven't looked at other ratings.
Japan doing similar, though in their case it's more like QE94354882
Mediteranean Europe is knackered, but we're about to introduce massive public spneding cuts and sometime soon the US will have to follow.
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