Moody’s Downgrades Australia Banks Credit Ratings

Moody’s Downgrades Australia Banks Credit Ratings

Moody’s has cut the long term credit rating of Australia’s four largest banks, saying increasing home pricing, household debt and low wage growth is posing a threat to lenders. ANZ, NAB, Westpac and Commonwealth Bank of Australia has been downgraded from Aa2 to Aa3. The ratings outlook for all four banks still remain stable.

“ANZ, NAB, Westpac and Commonwealth Bank of Australia has been downgraded from Aa2 to Aa3.”

~ Bloomberg

It comes after Standard & Poor’s recently left the banks’ credit ratings untouched as it downgraded smaller lenders. The combination of soaring house prices and stagnant wage growth has pushed the ratio of household debt to disposable income to 189 percent.

Related Reports: Bloomberg, Sydney Morning Herald


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Moody’s Cuts China Credit Rating

Moody’s Cuts China Credit Rating

Moody’s cuts its rating on China’s debt for the first time since 1989 in a challenge to the view that the nation’s leadership will be able to rein in debt while maintaining the pace of economic growth. Moody’s has reduced the rating to A1 from Aa3 and has indicated the likelihood of a “material rise” in economy wide debt.

“According to Bloomberg Intelligence, the total outstanding credit of China is now about 260% of GDP by the end of 2016, compared to 160% in 2008.”

~ Bloomberg

According to Bloomberg Intelligence, the total outstanding credit of China is now about 260% of GDP by the end of 2016, compared to 160% in 2008. Moody’s lowered China’s credit-rating outlook to negative from stable in March 2016, citing rising debt, falling currency reserves and an uncertainty over authorities ability to carry out reforms.

Related Reports: Bloomberg, Forbes

About Moody’s

Moody’s is an essential component of the global capital markets, providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets. Moody’s Corporation (NYSE: MCO) is the parent company of Moody’s Investors Service, which provides credit ratings and research covering debt instruments and securities, and Moody’s Analytics, which offers leading-edge software, advisory services and research for credit and economic analysis and financial risk management. The Corporation, which reported revenue of $3.6 billion in 2016, employs approximately 10,700 people worldwide and maintains a presence in 36 countries.

Visit: Moody’s

 


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Indonesia Fails to Win Full Investment Grade

Indonesia Fails to Win Full Investment Grade

Indonesia will need to wait longer for its full investment grade after S&P Global Ratings maintained its junk status, an assessment that the country’s finance minister sees as “not appropriate.” S&P confirmed the country’s BB+ rating. Fitch Ratings and Moody’s Investors Service have already awarded Indonesia investment grade status more than four years ago.

“Indonesia will need to wait longer for its full investment grade after S&P Global Ratings maintained its junk status”

~ Bloomberg

The failure to win to full investment grade status may take the shine off Asia’s best-performing bond market, with the nation’s local-currency notes gaining about 10 percent this year, according to indexes compiled by Bloomberg.

Related Reports: Bloomberg, Business Times

 

About Standard & Poor’s

Standard & Poor’s is a credit rating agency, best known for it’s S&P 500 indices – a major US stock indices.  The company issues credit ratings on debts such as government bonds and corporate bonds.

About Moody’s

Moody’s Investor Service is a credit rating agency and commonly referred as Moody’s.  The company issues credit ratings on debts such as government bonds and corporate bonds, by measuring expected investor loss in the event of default.

About Fitch

Fitch Ratings is a credit rating, commentaries & research company, part of Fitch Group. The company issues credit ratings on debts such as government bonds and corporate bonds.

Link: List of Credit Rating Agencies


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