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Credit rating firms sow doubt on euro zone bond rally

By Marius Zaharia LONDON (Reuters) - Credit rating firms say they could further downgrade the ratings of highly indebted euro zone countries, putting their bonds at risk of being pitched out of global indexes and reversing a fall in their borrowing costs.

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Standard & Poor's lowered Jordan's long-term credit rating on Monday by one notch to 'BB-' with a negative outlook due in part to the conflict in neighbouring Syria. "The downgrade results from our view of Jordan's weakened external and fiscal profiles in the wake of reduced foreign grants and weaker terms of trade in 2011 and 2012," said S&P in a statement. It noted that foreign grants fell to 1.5 percent of the country's total economic output -- the lowest in over a decade -- from 5.9 percent in 2011.

Slovenia says reforms on track despite ratings downgrade

Slovenia on Saturday said it was confident its newly-adopted action plan would stabilise public finances and lead to an economic recovery, a day after international ratings agency Fitch downgraded the crisis-hit country by one notch. "The consolidation of public finances will follow the objectives that have been clearly set. We will efficiently carry out all the necessary measures drawn in its stability and reform programs," Slovenia's finance ministry said in a statement in response to the downgrade.

Fitch raises Greek credit rating one notch to 'B-'

Fitch Ratings raised Greece's long-term credit rating by one notch to 'B-' on Tuesday, removing it from being at risk of default, citing progress in balancing the country's finances and improving its trade competitiveness. "The Greek economy is rebalancing: clear progress has been made towards eliminating twin fiscal and current account deficits..." said Fitch, adding that its outlook was stable. rl/wai

Credit agency Moody's says violent strikes, factory disasters pose risk to Bangladesh rating

Moody's says garment factory disasters in Bangladesh and frequent, increasingly violent strikes pose risks to the country's credit rating. The ratings agency says Thursday that political tensions are damaging confidence in Bangladesh, which has a rating below investment grade. A general strike was called earlier this week by opposition political parties to protest the deaths of at least 29 people during street demonstrations Monday.

Fitch upgrades Mexico credit rating over reform drive

Fitch Ratings upgraded Mexico's sovereign credit rating on Wednesday, citing what it called the country's strong economic fundamentals and commitment to structural reforms. The international ratings agency increased Mexico's credit score by one notch to BBB+ from BBB and stated that its rating outlook was stable. "The upgrade of Mexico's sovereign ratings reflects its strong macroeconomic fundamentals, including the absence of macro-financial imbalances, consistent adherence to its inflation targeting and flexible exchange rate regimes," Fitch said in a statement.

Moody's downgrades U.K.'s Co-operative bank amid concerns about credit quality

LONDON - The Co-operative Bank on Friday sought to reassure its customers that it didn't need a government bailout after Moody's Investors Service downgraded the U.K. lender's debt ratings to "junk" status. Concerns about the bank's credit status had been rising since it pulled out of a deal to buy some 630 branches from another U.K. lender, Lloyds Bank.

Slovenia places bonds despite 'junk' downgrade

Slovenia has raised 3.5 billion dollars (2.7 billion euros) in a successful bond sale, two days after Moody's downgraded the eurozone country's rating to "junk", the finance ministry said on Friday. The country sold 2.5 billion dollars in 10-year dollar-denominated bonds at an average interest rate of 6.00 percent, and 1.0 billion dollars in five-year bonds at 4.95 percent, the ministry said.

Standard & Poor's raises Philippines' credit rating to investment grade

MANILA, Philippines - MANILA, Philippines (AP) — Standard S The upgrade reflects a "strengthening external profile, moderating inflation, and the government's declining reliance on foreign currency debt," S Fitch Rating's gave the Philippines its first-ever investment grade rating in late March, citing the country's current account surplus and status as a creditor nation. Presidential spokesman Edwin Lacierda said the upgrade indicates sustained confidence in the Philippine economy, which grew 6.6 per cent last year.

Philippines gets second credit ratings upgrade

The Philippines received its second investment grade credit rating on Thursday with Standard and Poor's following Fitch in giving an upbeat assessment of the Southeast Asian country's economy. S&P said the outlook on the Philippines was stable, and raised its rating to BBB- from BB+. "The upgrade on the Philippines reflects a strengthening external profile, moderating inflation and the government's reliance on foreign currency debt," S&P credit analyst Agost Benard said in a statement.
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