End Times and Current Events

General Category => Europe => Topic started by: Psalm 51:17 on January 13, 2012, 12:19:57 pm

Title: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on January 13, 2012, 12:19:57 pm
Eurozone nations set for S&P downgrade

January 13, 2012
France and Austria downgraded

Eurozone governments are bracing for new debt-crisis turbulence after ratings agency Standard & Poor’s told them it would downgrade two of the eurozone’s six triple A nations.

This leaves Germany as the only large triple-A country.

The move comes after S&P warned the six triple A nations and nine others in the eurozone that it had put their creditworthiness on review as a result of the debt crisis and the worsening economic outlook.


Title: S&P Downgrades Countries in Eurozone(9 and counting)
Post by: Psalm 51:17 on January 13, 2012, 06:12:35 pm


Mass S&P downgrade as Greek debt impasse hit euro zone
BERLIN/ATHENS (Reuters) - Standard & Poor's downgraded the credit ratings of nine euro zone countries, stripping France and Austria of their coveted triple-A status but not EU paymaster Germany, in a Black Friday 13th for the troubled single currency area.
"Today's rating actions are primarily driven by our assessment that the policy initiatives that have been taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the eurozone," the U.S.-based ratings agency said in a statement.
In a potentially more ominous setback, negotiations on a debt swap by private creditors seen as crucial to avert a Greek default that would rock Europe and the world economy broke up without agreement in Athens, although officials said more talks are likely next week.
If Greece cannot persuade banks and insurers to accept voluntary losses on their bond holdings, a second international rescue package for the euro zone's most heavily indebted state will unravel, raising the prospect of bankruptcy in late March, when it has to redeem 14.4 billion euros in maturing debt.
S&P cut the ratings of Italy, Spain, Portugal and Cyprus by two notches and the standings of France, Austria, Malta, Slovakia and Slovenia by one notch each.
The move puts highly indebted Italy on the same BBB+ level as Kazakhstan and pushes Portugal into junk status.
It put 14 euro zone states on negative outlook for a possible further downgrade, including France, Austria, and still triple-A rated Finland, the Netherlands and Luxembourg.
Germany was the only country to emerge totally unscathed with its triple-A rating and a stable outlook.

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Title: S&P Downgrades Countries in Eurozone(9 and counting)
Post by: Psalm 51:17 on January 14, 2012, 09:10:27 am


Europe must move quickly after downgrades: Merkel
BERLIN (Reuters) - Ratings downgrades in the euro zone by S&P underline why Europe must seal a pact to tighten fiscal rules quickly and get its permanent bailout fund up and running as soon as possible, German Chancellor Angela Merkel said on Saturday.
"We are now challenged to implement the fiscal compact even quicker ... and to do it resolutely, not to try to soften it," she said at a meeting of conservatives in the northern city of Kiel.
"We will also work particularly to implement the permanent stability mechanism, the ESM, so soon as possible -- this is important regarding investor trust."
Standard & Poor's on Friday downgraded the credit ratings of nine out of 17 euro zone countries. Germany kept its AAA rating, while France and Austria lost theirs.

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Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries(9 and counting)
Post by: Psalm 51:17 on January 15, 2012, 01:06:53 pm
Rating of Europe's bailout fund rests on Germany - S&P
14 January 2012, New York (Reuters)

The top credit rating of Europe's bailout fund depends on additional financial backing from Germany and the other three remaining AAA-rated euro zone countries, Standard & Poor's said on Friday.

The fund, also known as European Financial Stability Facility, has its AAA rating at risk after S&P stripped two of its guarantors, France and Austria, of their top credit ratings.

If downgraded, the EFSF could face higher borrowing costs, reducing its firepower to rescue troubled countries in the region.

"If you have a greater commitment from the other countries, then the EFSF could retain its AAA rating," John Chambers, the chairman of S&P's sovereign rating committee, told Reuters Insider in an interview.

"If you've lost two of the six AAA guarantors, either they need to increase the backing from the four remaining AAA guarantors or they need to raise some cash buffers," Chambers said.


Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries(9 and counting)
Post by: Psalm 51:17 on January 16, 2012, 02:10:17 pm
S&P Downgrades EFSF From AAA To AA+, May Cut More If Sovereign Downgrades Continue
16 January 2012, Tyler Durden (Zero Hedge)


And so the latest inevitable outcome of the French downgrade from AAA has arrived, after the S&P just downgraded the EFSF, that pillar of European stability, from AAA to AA+. S&P adds:

"if we were to conclude that sufficient offsetting credit enhancements are, in our opinion, not likely to be forthcoming, we would likely change the outlook to negative to mirror the negative outlooks of France and Austria.

Under those circumstances we would expect to lower the ratings on the EFSF if we lowered the long-term sovereign credit ratings on the EFSF's 'AAA' or 'AA+' rated members to below 'AA+'."

In other words, as everyone but Europe apparently knew, the EFSF is only as strong as the rating of its weakest member.

And now the rhetoric on how AAA is not really necessary for the EFSF, begins, to be followed by AA, next A, then BBB and finally how as long as the EFSF is not D-rated all is well.

Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries(9 and counting)
Post by: Psalm 51:17 on January 16, 2012, 11:17:35 pm
S&P downgrades euro zone rescue fund, Greece pressured



By Luke Baker

BRUSSELS (Reuters) - U.S. rating agency Standard & Poor's cut its credit rating of the euro zone's EFSF rescue fund on Monday, and Greece was under pressure to break a deadlock in debt swap talks if it is to avoid an unruly default.

French Finance Minister Francois Baroin said there was no need to shore up the European Financial Stability Facility after S&P downgraded it by one notch to AA+ from triple-A, echoing the view of Germany, the only major euro zone member to retain a top-notch credit rating.

S&P said in a statement the decision was all but inevitable following identical cuts three days earlier to the creditworthiness of France and Austria, two of the EFSF's guarantors.

"We consider that credit enhancements that would offset what we view as the now-reduced creditworthiness of the EFSF's guarantors and securities backing the EFSF's issues are currently not in place," the agency said in a statement.

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Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries(9 and counting)
Post by: Psalm 51:17 on January 27, 2012, 05:06:05 pm

Fitch cuts Italy, Spain, other euro zone ratings


NEW YORK (Reuters) - Fitch downgraded the sovereign credit ratings of Belgium, Cyprus, Italy, Slovenia and Spain on Friday, indicating there was a 1-in-2 chance of further cuts in the next two years.
In a statement, the ratings agency said the affected countries were vulnerable in the near-term to monetary and financial shocks.
"Consequently, these sovereigns do not, in Fitch's view, accrue the full benefits of the euro's reserve currency status," it said.
Fitch cut Italy's rating to A-minus from A-plus; Spain to A from AA-minus; Belgium to AA from AA-plus; Slovenia to A from AA-minus and Cyprus to BBB-minus from BBB, leaving the small island nation just one notch above junk status.
Ireland's rating of BBB-plus was affirmed.
All of the ratings were given negative outlooks.

Fitch said it had weighed up a worsening economic outlook in much of the euro zone against the European Central Bank's December move to flood the banking sector with cheap three-year money and austerity efforts by governments to curb their debts.
"Overall, today's rating actions balance the marked deterioration in the economic outlook with both the substantive policy initiatives at the national level to address macro-financial and fiscal imbalances, and the initial success of the ECB's three-year Long-Term Refinancing Operation in easing near-term sovereign and bank funding pressures," Fitch said.
Two weeks ago, Standard & Poor's downgraded the credit ratings of nine euro zone countries, stripping France and Austria of their coveted triple-A status but not EU paymaster Germany, and pushing struggling Portugal into junk territory.
With nearly half a trillion euros of ECB liquidity coursing through the financial system, some of which has apparently gone into euro zone government bonds, and with hopes of a deal to write down a slab of Greece's mountainous debt, even that sweeping ratings action had little market impact.
The euro briefly pared gains against the dollar after Fitch cut the five euro zone sovereigns but soon jumped to a session high of $1.3208, according to Reuters data, its highest since December 13.
Italy is widely seen as the tipping point for the euro zone. If it slid towards default, the whole currency project would be threatened.
Italian Prime Minister Mario Monti, a technocrat who has won plaudits for his economic reform drive, said he reacted to Fitch's downgrade of Italy with "detached serenity."
"They signal things that are not particularly new, for example, that Italy has a very high debt as a percentage of GDP and they signal that the way the euro zone is governed as a whole is not perfect and we knew that too," he said during a live interview on Italian television.
"They also say things that give a positive view of what is being done in Italy because there is much appreciation for policies of this government and this parliament," he said.
Fitch said of Italy: "A more severe rating action was forestalled by the strong commitment of the Italian government to reducing the budget deficit and to implementing structural reform as well as the significant easing of near-term financing risks as a result of the ECB's 3-year Longer-term Refinancing Operation."
(Reporting by Rodrigo Campos, Daniel Bases, Philip Pullela and Pam Niimi, writing by Mike Peacock, Editing by James Dalgleish)

Title: A look at debt levels in the 17-nation eurozone
Post by: Psalm 51:17 on February 06, 2012, 01:27:05 pm


The EU's statistics office estimates that the debt level across the 17-nation eurozone fell to 87.4 percent of gross domestic product at the end of the third quarter of 2011 from 87.7 percent at the end of the previous quarter.

Here are the figures for each country.

Greece 159.1 percent, up from 154.7 percent

Italy 119.6 percent, down from 121.2 percent

Portugal 110.1 percent, up from 106.5 percent

Ireland 104.9 percent, up from 102.3 percent

Belgium 98.5 percent, up from 98.0 percent

France 85.2 percent, down from 86.0 percent

Germany 81.8 percent, down from 82.0 percent

Austria 71.6 percent, down from 72.2 percent

Malta 70.3 percent, down from 71.9 percent

Cyprus 67.5 percent, unchanged

Spain 66.0 percent, unchanged

Netherlands 64.5 percent, up from 63.8 percent

Finland 47.2 percent, up from 45.6 percent

Slovenia 44.4 percent, down from 44.5 percent

Slovakia 42.2 percent, down from 42.7 percent

Luxembourg 18.5 percent, down from 18.8 percent

Estonia 6.1 percent, down from 6.3 percent

Source: Eurostat

Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on February 09, 2012, 09:09:51 am
CME group cut by S&P as MF Global fallout spreads
8 February 2012, by Jacob Bunge (MarketWatch)

--Long-term rating cut  from AA, outlook negative

--Agency cites higher financial and credit risk from MF Global fallout

--CME says exchange group remains happy with its rating

--Moody's maintains AA3 rating, with stable outlook

CME Group Inc. saw its credit rating cut by Standard & Poor's and could face further downgrades because of reputational damage linked to the exchange operator's role in the collapse of MF Global.

Standard & Poor's Ratings Services cut CME's long-term rating by a notch to AA-, citing the potential cost of a financial safety net established for clients in the wake of the unfolding controversy surrounding the bankruptcy of MF Global Holdings' (MFGLQ).

The agency also cited the potential risks from CME's expanded role in clearing over-the-counter derivatives, a big growth area for the industry CME has been pursuing for several years.

"We could lower the rating on CME Group if legal and reputational issues take a long-term toll on its franchise and financial position," said the agency in a statement.


Title: Moody's Downgrades Italy, Spain, Portugal, Other, Puts UK, France On Outlook -
Post by: Psalm 51:17 on February 13, 2012, 05:28:43 pm
Moody's Downgrades Italy, Spain, Portugal And Other, Puts UK, France On Outlook Negative - Full Statement
13 February 2012, by Tyler Durden (Zero Hedge)

[] = emphasis mine

You know there is a reason why Europe just came crawling with an advance handout looking for US assistance: Moody's jsut went [bleep] on Europe. In other news, we wouldn't want to be the company that insured Moody's Milan offices.

Moody's adjusts ratings of 9 European sovereigns to capture downside risks

As anticipated in November 2011, Moody's Investors Service has today adjusted the sovereign debt ratings of selected EU countries in order to reflect their susceptibility to the growing financial and macroeconomic risks emanating from the euro area crisis and how these risks exacerbate the affected countries' own specific challenges.

Moody's actions can be summarised as follows:

- Austria: outlook on Aaa rating changed to negative

- France: outlook on Aaa rating changed to negative

- Italy: downgraded to A3 from A2, negative outlook

- Malta: downgraded to A3 from A2, negative outlook

- Portugal: downgraded to Ba3 from Ba2, negative outlook

- Slovakia: downgraded to A2 from A1, negative outlook

- Slovenia: downgraded to A2 from A1, negative outlook

- Spain: downgraded to A3 from A1, negative outlook

- United Kingdom: outlook on Aaa rating changed to negative

Title: A&G's AIG Moment Approaching: Moody's Downgrades Generali, Cuts Megainsurer Alli
Post by: Psalm 51:17 on February 16, 2012, 09:18:00 am
A&G's AIG Moment Approaching: Moody's Downgrades Generali, Cuts Megainsurer Allianz Outlook To Negative
15 February 2012, by Tyler Durden (Zero Hedge)

For a while now we have said that the very weakest link in Europe is not the banks, not the ECB, not triggered CDS, and not even the shadow banking system (well, infinitely rehypothecated Greek bonds within a daisychain of broker-dealers, which ultimately ends up at the ECB at a negligible repo discount, that could well be the weakest link - we will have more to say about this over the weekend) but two very specific insurers:

Italy's mega insurer Assecurazioni Generali, which at last check had more Greek bonds as a % of TSF than anyone else, and Europe's biggest insurer and Pimco parent, Allianz, which is filled to the gills with pretty much everything (for more on Generali, or as we like to call it by its CDS ticker ASSGEN read here, here, here, and here).

Well, Moody's just gave them, and the entire European space, the evil eye, and soon the layering of margin calls upon margin calls, especially if and when Greece defaults and a third of ASSGEN's balance sheet is found to be insolvent, will make anyone who still is long CDS those two names rich.

Assuming of course the Fed steps in and bails out the counterparty the CDS was purchased from.

Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on April 19, 2012, 01:18:22 pm
Spain, France Bonds Fall Amid Renewed Debt Crisis Concern
19 April 2012, by Emma Charlton and Lukanyo Mnyanda (Bloomberg)


Italian and Spanish bonds led declines among Europe’s higher-yielding government securities amid concern the regional debt crisis is worsening.

Italy’s 10-year yields climbed for a second day after a government report showed industrial orders fell more than economists forecast and the Finance Ministry said debt-servicing costs will increase.

French bonds dropped after Citigroup Inc. said it expects the nation’s credit rating to be cut over the next two to three years.

German bunds advanced as investors sought the safest assets. Spain and France both raised the amounts they targeted at debt auctions today.

“There is a quite significant widening” of Italian and Spanish yields relative to German bunds, said Peter Schaffrik, head of European interest-rate strategy at Royal Bank of Canada in London.

“Those two economies have low growth and widening budgets. For euro-investors bunds are the natural safe haven.”

The Italian 10-year bond yield rose 10 basis points, or 0.1 percentage point, to 5.58% at 3:26 p.m. London time.

The 5% bond maturing in March 2022 fell 0.73, or 7.30 euros per 1,000-euro ($1,312) face amount, to 96.165.

The extra yield investors demand to yield the securities instead of German bunds expanded 12 basis points to 388 basis points, after reaching 409 basis points on April 11, the widest since Feb. 16.

Spain’s 10-year yield advanced eight basis points to 5.91%, increasing the spread over bunds by 11 basis points to 421 basis points.

Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on April 22, 2012, 05:14:21 pm
Dutch elections loom as budget talks collapse
21 April 2012, by Gilbert Kreijger and Thomas Escritt - The Hague (Reuters)


"Elections are to be expected now. I will talk to parliament (on) how to get through this situation," Rutte told reporters on Saturday after talks collapsed over how and where to cut about €14 to €16 billion euros from the annual budget in order to bring the deficit below 3% of GDP.

The proposals up for discussion had included a broad pay freeze, higher value added tax, cuts to subsidies on mortgages and *an additional 5% rent increase.


The cuts are seen as essential if the Netherlands is to bring its deficit back below the European Union's target of 3% of GDP and ease concerns that it could lose its precious triple-A credit rating.

Earlier this week, ratings agency Fitch warned that the Netherlands, one of just four euro countries with a coveted triple-A rating, was on the verge of a downgrade in its credit status due to high debt.

*Negotiations fail Catshuis good news for tenants, 21 april 2012, Amsterdam (Blik Op Nieuws) (google trans from Dutch) http://tinyurl.com/7ff5owo

ORG: http://www.blikopnieuws.nl/bericht/143508/Mislukken_Catshuisonderhandelingen_goed_nieuws_voor_huurders.html

Also see:

Citigroup Says Netherlands No Longer Part of Euro-Area Core
26 March 2012, by Jurjen van de Pol and Fred Pals (Bloomberg)

Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on April 23, 2012, 12:24:55 pm
Netherlands political crisis casts cloud on euro zone
22 April 2012, by Sara Webb and Thomas Escritt - Amsterdam (Reuters)


The Netherlands, a core euro zone member, was drawn into Europe's debt crisis at the weekend when the government failed to agree on budget cuts, making elections almost unavoidable and casting doubt on its support for future euro zone measures.



Rutte and Finance Minister Jan Kees de Jager - who flew back from IMF talks in Washington when the crisis broke - are among the euro zone's harshest critics of "budget sinners" like Greece and Portugal, and the Netherlands is seen as close to Germany in calling for tough austerity measures.

That is about to change.

"The Netherlands can no longer be a role model to others. There may be a reaction in other countries: 'If they don't do it, why should we?'

This risk exists, which is unpleasant," said Jaap Koelewijn, an economist and professor of corporate finance.

The annual budget cuts Wilders has balked at are needed for the Netherlands to meet European Commission targets.

Without them, its public deficit is forecast to hit 4.6% of GDP in 2013, well above the 3% agreed with the Commission.

If the Netherlands does not cut spending and breaks EU budget rules, it is likely to lose its coveted triple-A credit rating, leading to higher borrowing costs.

The level of state debt rose to 65.2% of GDP at the end of 2011 from 62.9% in 2010, Statistics Netherlands said last month.

Ratings agency Fitch recently warned the Netherlands it must get its finances in order or risk a ratings downgrade, while in a report last month, Citibank went as far as to say it no longer deserved to be considered a core member of the euro zone because of its fiscal woes.

The uncertainty over budget cuts and reforms, and the time it takes to organize elections, will probably lead to higher interest rates and higher yields on Dutch government bonds.

"The cost of finance for the Netherlands will go up slightly compared to Germany, but our debt is mostly long-term.

The Netherlands doesn't have high refinancing needs in the next few years," said economist Sweder van Wijnbergen.

Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on April 26, 2012, 10:57:15 am
Outgoing Dutch PM anticipates September snap poll
25 April 2012, (AFP)

The Netherlands' outoing Prime Minister Mark Rutte, whose majority in parliament collapsed on Monday after the far right quit in protest at austerity measures, has said he expects a snap election to be held on September 12.

Outgoing Dutch Prime Minister Mark Rutte said Tuesday he expected snap polls on September 12 following the collapse of his government over austerity measures.

"I can imagine that we will decide on Friday (at a cabinet meeting) to hold elections on September 12," he told the Dutch parliament, adding: "I don't see any polls before the summer."

Rutte submitted the resignation of his centre-right cabinet to Queen Beatrix on Monday after the collapse of its parliamentary partnership with a far-right party over the austerity measures.

The crisis was triggered Saturday when the Freedom Party, led by Geert Wilders, walked out of budget negotiations designed to ensure that Europe's fifth-largest economy brings itself back within eurozone deficit targets.

Although not part of the ruling coalition, Wilders' party had effectively guaranteed the government's majority for the last 18 months by supporting it in parliament.

That arrangement is in tatters, with new elections looming.

Rutte's liberal VVD party, its coalition partner the Christian Democrats and the Freedom Party had been negotiating for seven weeks on the package.

But Wilders at the last moment refused to give the nod on measures that would save €14.4 billion ($19 billion), bringing the deficit down to 2.8% of GDP in 2013.

The Dutch budget deficit stood at 4.7% of GDP last year, way over the EU ceiling of 3% of GDP.

Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on May 24, 2012, 11:08:24 pm
Moody's downgrades three Swedish banks
24 May 2012, by Nathalie Tadena (MarketWatch)

Moody's Investors Service downgraded its long-term ratings on three Swedish banks, reflecting high reliance on wholesale funding, low profit margins and risk to asset quality.

Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on May 30, 2012, 09:38:35 pm


Moody’s Downgrades Danske Bank, Eight Other Danish Lenders

Moody’s Investors Service downgraded the ratings of nine Danish financial institutions, including the country’s biggest bank, Danske Bank A/S, saying loan books have deteriorated and debt refinancing has become harder.

Danish banks suffer from “a weak operating environment, pressurized asset quality and poor profitability,” the rating company said late yesterday in a statement published out of London.

Danske Bank’s deposit rating was cut two steps to Baa1 from A2, after Standard & Poor’s earlier yesterday cut the Copenhagen-based bank’s long-term rating to A- from A. The bank said in a separate statement that it “does not understand Moody’s very negative view” of the Danish banking industry. It had also questioned the reasoning for S&P’s downgrade.

“We have had a close dialog with Moody’s in recent months,” Henrik Ramlau-Hansen, Danske’s chief financial officer, said. “We are certain that Moody’s has heard our arguments, but we do not think they are reflected in the rating the bank has received.”


Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on May 31, 2012, 02:18:21 pm
Moody's set to downgrade key European banks
30 May 2012, by Art Patnaude - London (MarketWatch)

-- Moody's region-wide assessment of bank ratings turns to key economies

-- Analysts say focus will center on depth of any downgrades

-- Eligible collateral for ECB loans pose short-term risk

Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on June 05, 2012, 08:54:59 am
Egan Jones Downgrades The UK From AA To AA-
4 June 2012, by Tyler Durden (Zero Hedge)

When one is expected to go down for missing a comma in their NRSRO application, one at least should go down swinging.

Sure enough, Egan-Jones, the only rating agency with any credibility left, is at it again, this time cutting the big momma itself - the UK - from AA to AA-.

6/4/2012: United Kingdom: EJR lowered AA to AA- (Neg.) Projected A+ (S&P: AAA) (6152Z LN)

Synopsis: On the balance of payment side, imports have exceeded exports by an average of approximately 500B pounds annually over the past several years.

The major problems for the UK is that Europe's banking crisis does not appear to be abating as evidenced by the miserable results of most EU banks.

On the fiscal side, the deficit to GDP has declined over the past three years from 11.5% to 8.3%, which is a respectable decline, but the bulk of the reduction was the result of increased taxes since GDP growth was weak.

The over-riding concern is whether the country will be able to continue to cut its deficit in the face of weaker economic conditions and a possible deterioration in the country's financial sector.

Unfortunately, we expect that the UK's debt/GDP will continue to rise and the country will remain pressed.

Full report here http://www.egan-jones.com/mail/report.aspx?ID=50871&AccessCode=e62a9b8e-db9e-4d61-aa1d-90c8036b5be2&ReportCode=eab509df-e7de-45ae-85f0-5603a139dc63&ClientID=1829

Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on June 05, 2012, 11:18:51 pm
Moody's Downgrades Six German Bank Groups, And Their Subsidiaries, By Up To Three Notches
Submitted by Tyler Durden on 06/05/2012 19:27 -0400
Moody's takes multiple actions on German banks' ratings; most outlooks now stable

Frankfurt am Main, June 06, 2012 -- Moody's Investors Service has today taken various rating actions on seven German banks and their subsidiaries, as well as one German subsidiary of a foreign group. As a result, the long-term debt and deposit ratings for six groups and one German subsidiary of a foreign group have declined by one notch, while the ratings for one group were confirmed. Moody's also downgraded the long-term debt and deposit ratings for several subsidiaries of these groups, by up to three notches. At the same time, the short-term ratings for three groups as well as one German subsidiary of a foreign group have been downgraded by one notch, triggered by the long-term rating downgrades.

More at above link////////

Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on June 06, 2012, 02:04:58 pm
Moody's cuts ratings of three Austrian banks
5 June 2012, (MarketWatch)

Moody's Investors Service lowered its investment-grade ratings on Austria's three largest banks, pointing to their vulnerability to adverse operating conditions in some core markets in central and eastern Europe as well as the increased risk of further shocks from the sovereign-debt crisis.

The senior debt and deposit ratings of Raiffeisen Bank International AG were downgraded by one notch to A2 while UniCredit Bank Austria's ratings were lowered a notch to A3.

Erste Group Bank AG's ratings were downgraded by two notches to A3.

The firm's outlook on Raiffeisen is stable, while its outlooks on UniCredit and Erste are negative.


Title: Re: S&P Downgrades Credit Ratings in Eurozone Countries
Post by: Psalm 51:17 on July 09, 2012, 07:29:37 pm
Egan-Jones Downgrades Netherlands And Austria To A, Negative Watch
9 July 2012, by Tyler Durden (Zero Hedge)

Netherlands, that one of four remaining AAA-rated Eurozone countries (by the big 3 rating agencies at least), was just downgraded by Egan Jones. And for good measure, EJ also cut Austria, both to A, outlook negative.


The Netherlands is among the European Union's top economies. However, the Netherlands has been shouldering the burdens of other EU countries and their banks via its exposure to the EFSF and indirectly via the ECB. The country's debt to GDP of 75% as of 2011 (expect near 82% for 2012) and a deficit to GDP of 4.7% is weak and is understated due to exposures to the EU periphery and the Netherland's financial institutions. On the positive side, unemployment was only 5.8% but will probably increase as many EU countries implement austerity measures. Other positives were the EUR48B balance of trade surplus and the €67B current account surplus as of the end of 2011. Inflation is near 2.5% currently (per the the Dutch Statistics Office) but is up from 0% in 2009 and will probably rise with monetization.

And Austria

Same story - like Germany and The Netherlands, Austria is among the European Union's top economy. However, Austria has been shouldering the burdens of other EU countries and their banks via its exposure to the EFSF and indirectly via the ECB. The country's debt to GDP of 79.4% as of 2011 (expect near 85% for 2012) and a deficit to GDP near 3.0%, are weak and are understated due to exposures to the EU periphery and the Netherland's financial institutions. Unemployment was near 8% and will probably increase as many EU countries implement austerity measures. Other positives were the €9.4B balance of trade  surplus and the €10.6B current account surplus as of the end of 2011. Inflation is near 2.1% currently (per Statistik Austria) but is up from 0% in 2009 and will probably rise with monetization.