spain downgraded by Moody's

[V88Dicky]

I don't get it.

[Bing o]

musclecarmad said:

another downgrade for spain.

things seem to be getting worse not better for us all.

on bbc website if interested now Aa1

I think it's only really the US and Europe to be honest.

[elster]

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.

[hornetrider]

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.

I still don't get it.

[V88Dicky]

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.

Still don't get it. Are these batteries we're talking about here?

Whats going on?

[elster]

hornetrider 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.

I still don't get it.

When borrowing money they pay more interest.

[V88Dicky]

Now I get it.

[hornetrider]

How do the ratings break down elster, my good man? Is there a wide range?

[elster]

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

[Bill Carr]

I always thought that if you want triple-A you should go to Maplin.

[Fittster]

Do the rating agencies have any credibility anymore?

[RichardD]

Bill Carr said:

I always thought that if you want triple-A you should go to Maplin.

Probably because of the German origins I've found Aldi much better value

[spikeyhead]

Bill Carr said:

I always thought that if you want triple-A you should go to Maplin.

a randon letter generator that only ever produced Aaa would probably be more appropriate for rating CDOs.

[thinfourth2]

Am i right in thinking that these grading are a bit like A-levels

An A grade everyone gets so they keep inventing new top level grade

[Bing o]

thinfourth2 said:

Am i right in thinking that these grading are a bit like A-levels

An A grade everyone gets so they keep inventing new top level grade

No.

[elster]

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.

[Fittster]

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.

After their huge failure in the build up to the credit crunch why does anyone think that they are no matter able to predict the future?

[Murcielago_Boy]

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.

Why hasn't this been reflected by increased Euro weakness? It's staring to p1ss me off... The Euro zone is F**KED and the markets don't care and wont price it in! Or will there be a massive correction later?

[elster]

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.

After their huge failure in the build up to the credit crunch why does anyone think that they are no matter able to predict the future?

I don't think you understand what they do.

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.

[spikeyhead]

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.

Why hasn't this been reflected by increased Euro weakness? It's staring to p1ss me off... The Euro zone is F**KED and the markets don't care and wont price it in! Or will there be a massive correction later?

It's a multiway race to the bottom, UK and US about to run QE2

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.