Today, Moody’s Investor Services provided a mixed review of the EU leaders’ summit and agreement to combat the European debt crisis. “In substance, however, the communique offers few new measures, and does not change our view that risks to the cohesion of the euro area continue to rise…As we announced in November, unless credit market conditions stabilize in the near future, our ratings of all EU sovereigns will need to be revisited. The communique does not change that view, and we continue to expect to complete such a repositioning during the first quarter of 2012.” Moody’s went on to cite … …READ MORE
Tag Archives: Moody's
ECB Wizard of Oz
Today, the European Central Bank published a legal opinion on their website which expressed concerns over the proposed bank restructuring powers for Ireland’s finance minister. The ECB is concerned they would have to take losses from a restructuring directed by Fin Min Brian Lenihan.
“The ECB has serious concerns that the draft law is insufficiently legally certain on a number of critical issues for the Eurosystem,” according to Reuters. “The issues include “the scope of collateral rights of central banks given as security against ELA (emergency liquidity assistance),” as well the rights of the ECB and possibly other central banks … …READ MORE
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Greece Downgraded Again
09:26 22Apr10 RTRS-GREECE MAY GET SHORT TERM BRIDGE LOAN BEFORE MECHANISM IS ACTIVATED- SENIOR GOVT SOURCE
09:27 22Apr10 RTRS-SHORT-TERM LOAN IS A THEORETICAL OPTION, NO NEED FOR IT YET- SENIOR GOVT SOURCE
Euro rallies 50 pts and then sells back down……amazing. Don’t think they have the legal framework to do it….
09:32 22Apr10 RTRS-MOODY’S DOWNGRADES GREECE’S SOVEREIGN RATINGS TO A3; ON REVIEW FOR FURTHER POSSIBLE DOWNGRADE… …READ MORE
EM to the Upside
Greece Cools: There are two stories out on Greece today that are influencing the markets. The first to come out on Sunday was a story indicating that Greece wanted help/subsidy from the rest of the EU on their auctions. Greece indicated that the interest rates they will be paying are too high and will cause problems. “What we are saying simply is we need the help so that we can borrow at the same rate as other countries, not at high rates which in fact undermine our possibility for making the changes and cutting down our deficit,” Greek PM George … …READ MORE
