Moody's: EU reviews need to be revisited

6:57 PM Moodys, reviews, revisited No Comments

Moody's investors service on Monday said it expected to its ratings on all European-check Union borrowers in the first quarter of next year, adding that last week agreement by European politicians offered some new measures to resolve the debt crisis region.Twenty-six of the 27 European Heads of State and Government have on Friday, more stringent budgetary rules for that track single currency area and also States of the euro zone and others have the crisis offer to help to combat to 200 billion euros ($ 267 billion) in bilateral loans to the International Monetary Fund (IMF).

"Basically but the Communique, the offers few new measures, and not our view changes, the risks for the cohesion of the euro area increase continues," said Moody's in a credit report.

"As we unless credit conditions stabilize market in the near future, be announced in November our ratings for all EU rulers need to be." The communique does not change this view, and we continue to expect to complete such a re-positioning in the first quarter of 2012.

The communique the persistent tensions between euro area seminar leader recognition of the need to increase support for tax weaker countries and more to do considerable resistance within the countries, so reflects, said Moody's.

"In the midst of the increasing pressure on euro area authorities act quickly, to credit market confidence, are the constraints with those who confronted you, also increases." "The longer that the case is, the greater the risk of adverse economic conditions, which would add to the already considerable challenges for the authorities coordination and debt efforts remains."

Copyright 2011 Thomson Reuters.

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Moody's: France's rate Outlook at risk

11:28 PM Frances, Moodys, outlook No Comments

PARIS - Moody's a sustained increase in which income coupled with weakening of economic growth could its debt warned France on Monday its ratings Outlook damage,'s second largest economy its AAA status lose fueling concern the euro area.

Worry about a high budget deficit and banks have drawn France exposure to other difficult European government bonds, in the line of fire of the bloc, crisis, despite the Government force that she needed everything, to protect their best note would do.

Moody's announced mid-October that France could put it an AAA rating on negative Outlook in three months, if the costs for rescue helps French banks and other members of the eurozone its budget overburdened.

Wall Street ends worst week since September

On Monday, the rating agency said that a deterioration in the French bond market-amid fears the sovereign debt crisis to the eurozone core-views, was a threat to the credit has been distributed but not at this stage to its actual assessment.

"Increased borrowing costs for a period of time the fiscal challenges that would reinforce French Government amid a deteriorating growth prospects, with negative credit impact, faces keep", said senior credit officer Alexander Kockerbeck in Moody's pro credit Outlook dated 21 November.

The premium investors calculate on French ten-year debt in comparison, the German equivalent was up but also short of 202 bps last week met about 20 basis points to 163 bps after the publication of Moody's continued to report, a new euro era high.

Moody's said, that to record levels last week, almost twice as much as Germany France pays for long-term funding, adding that increase in income as one a 100 basis-point additional 3 billion euros per year is refinancing costs.

Many investors have already discounted a downgrade to France's AAA rating, given the expectations that its economy will be recession next year.

"In the current environment people France be downgraded, expected", said Olivier Bizimana from Morgan Stanley, say, that it probably appeared at Moody would work over France's stable Outlook, if nothing changed. "The budgetary position is likely still worse than other triple a countries and on top of that you have the back up to a Central Bank."

Caught
France AFT debt agency said on Monday, that despite the recent increase of which results in proliferation of French scale of German guilt, his average medium - and long-term, remained close to historically low levels the financial costs.

"For the first 11 months of the year, it amounted to 2.78 percent, the (second) lowest level since the creation of the euro, after observed 2.53 percent in 2010," AFT of the Reuters news agency in a statement.

Economists said however, that France you will be sucked into a "Tax case risked" where growth slowing required more austerity measures, which, in turn, further slowing growth.

"If you have interest rates that it increase resources, on top of that you have vicious circle, where it is almost impossible to stabilise the trajectory of debt and pressure could add to the evaluations," Bizimana said.

The French Government recently cut its growth forecast for the next year by 1%, 1.75%, but most private economists consider, that still much too optimistic.

Budget Minister Valerie Pecresse said that more austerity measures, take the Government would not notice a 65 billion euro package cuts this month say a budget buffer of 6 billion euros next year there space to breathe would be, even if growth below average.

"We especially must avoid measures, to overthrow that country into a recession" said Pecresse.

But Moody's said, that slows down growth combined with rising interest rates hard for France would make it the target of 5.7 percent cut the budget deficit from an estimated at the end of this year to breach the EU limit of 3 per cent by the year 2013 hit.

"The French social model can be not financed, when the French economy is not persisted potential." With further slowdown of GDP growth that the political importance of further savings in this case would be tested for the Government, ", said note from Moody's on Monday."

In a research report on Monday of the stress in euros said JP Morgan David Mackie, zone bond markets increases the need for a dramatic response from policy-makers.

"Not surprisingly, all eyes are on the ECB as the only institution capable of quick and determined, step" he said, adding the ECB would begin to intervene also core countries in the bond markets.

Copyright 2011 Thomson Reuters.

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Moody's cuts Italy credit rating three notches

12:23 PM Credit, Italy, Moodys, notches, rating, three No Comments

NEW YORK/ROME — Moody's Investors Service cut Italy's bond ratings by three notches on Tuesday, saying it saw a "material increase" in funding risks for euro zone countries with high levels of debt.

Moody's downgraded Italy's ratings to A2 from Aa2, a lower rating than that of Estonia, and kept a negative outlook on the rating, a sign that further downgrades are possible within the next few years.

The move comes after Standard and Poor's cut its rating on Italy to A/A-1 from A+/A-1+ on September 19 and underlines growing investor uncertainty about the euro zone's third largest economy, which is now firmly at the center of the debt crisis.

"The negative outlook reflects ongoing economic and financial risks in Italy and in the euro area," Moody's said in a statement.

"The uncertain market environment and the risk of further deterioration in investor sentiment could constrain the country's access to the public debt markets," it said.

Moody's also said that Italy's rating could "transition to substantially lower rating levels" if there were long-term uncertainty over the availability of external sources of liquidity support.

Italy's mix of chronically low growth, a huge public debt amounting to 120 percent of gross domestic product and a struggling government coalition has caused mounting alarm in financial markets.

The Moody's decision came as little surprise after the agency said on September 17 that it would finish a review for possible downgrade of its rating on Italy within a month.

"It's not that it was unexpected, but it doesn't help the situation at all," said Robbert Van Batenburg, Head of Equity Research, at Louis Capital in New York.

"They have already traded as if there was somewhat of a downgrade in the works, so it will probably force Italian policymakers to embark on more austerity programs. It will put another fiscal straitjacket on them," he said.

Moody's said the likelihood of a default by Italy was "remote," but the overall shift in sentiment on the euro area funding market implied a greater vulnerability to a loss of market access at affordable interest rates.

Italy's borrowing costs have soared over the past three months and have only been kept under control by the European Central Bank's purchase of its government bonds on secondary markets.

An auction of long-term bonds last month saw yields on 10 year BTPs rise to 5.86 percent, their highest level since the introduction of the euro more than a decade ago.

The center-right government of Prime Minister Silvio Berlusconi has been under heavy pressure over its handling of the escalating crisis and recently cut its growth forecasts through 2013.

It is now expecting the economy to expand by just 0.6 percent next year, down from a previous projection of 1.3 percent.

The government last month pushed through a 60 billion euro austerity package -- bringing forward by one year to 2013 a goal to balance its budget — in return for support for its battered government bonds from the ECB.

Copyright 2011 Thomson Reuters.

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Moody's warns almost certainly Greek standard

11:11 PM almost, certainly, Greek, Moodys, standard, warns No Comments

Athens - Moody cut Greece's credit rating more in junk-e-region on Monday and said that it was almost certain to beat a standard tag on its debts because of a new EU bailout.

It was the second rating agency to a default after euro zone leaders warn banks agreed last week that the private sector share of the burden of rescue business shoulder would, the Greece it provides more cash and easier credit conditions of water to keep and avoid further infection.

"The announced EU programme with the Institute of international finance statement implies that the probability of one tormented Exchange and thus by default on Greek Government bonds is virtually 100 percent," Moody's said in a statement.

Bank lobby IIF, the private sector negotiations, 90 percent investor participation in the bond Exchange will attract plan new 109 billion euro bailout coming across the EU.

Moody's cut is Greece of three notches, CA, just a notch above implies review according to the expected loss of proposed debt exchanges by default.

Greece now has the lowest rating of each country in the world covered by Moody's, Fitch said last week that it would reconsider Greece review after the debt swap is completed.

"Once the distressed Exchange is complete, Moody's will consider Greece rating to ensure that they risk of the country's new credit profile, including the potential for further debt restructuring, is equivalent to", it was said.

However pledged during Fitch, a higher, fast "low speculative grade" Greece be after its bonds had been exchanged, said Moody's it could predict if the assessment would change or like.

"There is, how fast the debt Exchange, takes place", says Alastair Wilson Moody's Managing Director for EMEA, credit policy. "Once we and transparency about, who we will quickly review the credit profile." Whether that will change review, which is another question, "he told Reuters."

A senior EU official said on Saturday, the goal was to start to close a voluntary private of Greek bond swap end of August and early September.

Greek bank stocks and the broader stock market was unimpressed by Moody's action. Analysts said that the downgrade and the default warning and less disturbing following assurances on the part of the EU deal would be listed.

"The Council last week effectively Greek banks continue to access to ECB liquidity, even in the event that PSI (participation of the private sector) solves a selective standard secured", said Plato of Monokroussos, an economist at EFG Eurobank.

The Government has criticized repeatedly reviews companies for their downgrades and their spokesman threatened on Monday to end his subscriptions to these agencies, as the new rescue package for years issuing new bonds means Greece.

"All Governments figures a subscription for such agencies." I think we need no longer not the reviews. "No practical value have, said Elias Mosialos radio-9.""Perhaps the Ministry of finance should terminate its subscription."

CONTAGION CONTAINED... FOR NOW

Moody's said that there is the possibility of a second standard account would during check of social Greek rating.

"Our experience is that relatively small restructuring were often followed by lower standards", said Wilson, adding that he could not say if this would be the case for Greece.

The rescue package for Greece from other countries in the euro zone risks with short-term infection, but it was not necessarily positive in the longer term as it is a for the participation of the private sector offers, rescue precedent, said Moody's.

"The support package sets a precedent for future restructuring the finances of an other sovereign of the euro area as the Greece should be a problem." Therefore likely credit-neutral is the impact at the Thursday announcement for creditors of Ireland and Portugal, "it said.

The cost for the insurance the peripheral euro zone debt against default rose on Monday on the market doubts that the fresh aid package for Greece agreed that last week major economies protect from infection.

Standard & poor's and Fitch rate Greece CCC, largely in line with Moody's rating. S & P has not yet said how the impact of EU Summit deal Greece rating.

Copyright 2011 Thomson Reuters.

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Moody's cuts Ireland's rating to junk-e-

3:35 AM Irelands, junke, Moodys, rating No Comments

Moody's on Tuesday downgraded to do Ireland's Government bond ratings, junk, another blow for the euro area, as it fights to a worsening debt crisis include Brussels - investors service.

Moody's said it Ireland's rating a notch to BA1 from Baa3, because it, that a growing threat of the indebted country a second rescue mission must sees their expired current bailout end of 2013. The Outlook for Ireland "negative" remains, adds Moody's.

Banks and other private investors likely will be asked to contribute to any new bailout for example by Ireland more time to repay of its bonds Moody's said. This involvement of the private sector is currently negotiating is for Greece was the first country in the euro area, which had to be saved and which now negotiated his second rescue package a little more than a year within.

Downgrade of Ireland follows a similar move last week when Moody is the evaluation of Portugal, the third victim of the eurozone debt crisis cut. It comes at a difficult time for the 17-currency Union, which has seen the crisis in the last few days to devour large countries such as Spain and Italy, which are too large, is threatening to to be saved.

A two-day meeting of Finance Ministers in Brussels, the earlier Tuesday closed, opened the door for lower interest rates and longer terms for rescue loans from countries already saved - a move that should take some pressure of Ireland. The Ministers said that she also greater powers for the eurozone bailout Fund, would discuss, how to load the right on defaulted bonds on the open market and thus lower debt of the country to buy.

However, came the concessions, which remained very vague, as Minister for the first time acknowledged that they are ready, a temporary standard rating for Greece part of its efforts to banks and investment funds, the load of a second bailout of parts to get in.

The debate on the new Greek package has rocked markets and undermine the confidence of investors in other struggling countries like Ireland. It also urged the European Union and other countries of the euro area to the rating agencies, attack, which they say are unfair in their assessments of the countries that were already stored.

The European Commission, the EU Executive and one of the institutions, supervision of Ireland exiting bailout, came immediately to the downgrade.

"It is very much with the current data that the strong to has made a return to growth of GDP this year and the resolute implementation of the programme (rescue) by the Irish Government support," said the Commission in a statement.

Moody's confirms that the Irish Government slashed its budget deficit - the EU has the largest by far last year - and met in his program, which encompasses the goals cuts also tax increases and economic reforms.

Moody's, but warned that "implementation risks remain important, particularly in view of the continued weakness of the Irish economy."

He quotes also "the shift in tone between the EU governments over the conditions under which, support for distressed eurozone rulers are made available."

The EU has been locked in a battle with the ratings for last week, after it popped Moody's decision to downgrade Portugal. The block has new rules for credit rating agencies, after which fail that predict the credit crisis of 2007-08 implements. It is set to a new round of regulation in November, suggest where it new requirements for public debt ratings, such as a warning, such as longer for Governments, so that they point out errors with the data can introduce. It is considering to end also reviews for countries that have a international support program, said that the agencies so far not due regard to the European solidarity and that these countries are already adequately monitored by their public creditors.

Inspectors owe the European Commission, the European Central Bank and the international, Monetary Fund are currently in Dublin, check on the implementation of the bailout programme before the next loan can be transferred. Their mission is set to end on Thursday.

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