There appears to be a race to see who can warn and downgrade the most from the ratings agencies. Yesterday, Fitch downgraded Mexico’s foreign currency rating to BBB on the ability of the government to meet their fiscal obligations (reduced maneuverability of fiscal accounts) and their increasing debt to GDP. Today, they warned about Japanese banks saying that weaker loan quality may put pressure on Japan’s “mega” banks’ performance and in turn capitalization, which remains somewhat weak by international standards, especially in terms of the “core” capital levels

The FT reports that S&P released a study of the world’s major … …READ MORE