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Archive for the ‘Federal Reserve’ Category

Moody's Review China's Credit Rating, Overseas Investment …

www.proactiveinvestors.co.uk11/8/11

HIGHLIGHTS FROM CHINA About ARC China ARC China is a Shanghai-based investment manager focused on investments in consumption-driven, entrepreneur-owned small and medium sized enterprises in China's Tier II and Tier III …

China cuts bank reserve ratio by 50 bps | Bramesh's Technical …

www.brameshtechanalysis.com11/30/11

In a major rating action review of as many as 37 banks globally, S&P has incidentally upgraded two Chinese banks – Bank of China and China Construction Bank. A credit rating is generally considered as a tool to measure an …

A PDF of The Ratings Of Various Countries By The Credit Agencies Is Available For Download

Government officials in China are berating the U.S. because of the Standard & Poor’s downgrade to AA+ and Guan Jianzhong, chairman of Dagong Global Credit Rating, says the U.S. dollar is,

"Gradually being discarded by the world", adding that the “process will be irreversible".

China’s Credit Rating

Fitch gives China an A+ which is their fourth highest rating.

Moody’s gives China an Aa3 which is there third highest ranking.

S&P lists China’s debt rating as AA-, which is the fourth highest level, due to its “sizable” contingent liabilities in its banking system.

Debt to GDP

China’s debt-to-GDP ratio is not only worse than the United State’s ratio, it’s probably worse than Portugal’s, and Portugal is close to bankruptcy.

Despite Moody’s Investors Service saying last month that China’s local debt was understated by hundreds of billions of dollars, the People’s Daily said S&P’s downgrade of the U.S.’s credit rating,

"Sounded the alarm bell for the dollar-denominated global monetary system".

Some Points To Ponder

China has come to own an estimated $1.16 trillion in U.S. debt, by printing excessive Yuans which holds down the currency’s value, making its exports dirt cheap, and it then it uses that extra printed currency to buy U.S. debt.

China likes to say its debt-to-GDP ratio is 17% but the respected Beijing-based research firm Dragonomics says it’s in fact 89% of GDP, which if true would make it worse than Portugal’s which is 83% of GDP.

Stephen Green, who is China economist at Standard Chartered Bank, reckons China’s total debt, including contingent liabilities, is 77% of GDP.

Moody’s said last month that China’s local government debt is understated and might be 3.5 trillion yuan ($540 billion), bigger than its state auditor has estimated,

China’s central bank alone holds an estimated $1.16 trillion in debt, and the government has already increased credit in the system to a reported 200% of GDP.

The eurozone’s problems have kept the euro on a very questionable footing, with the European Central Bank keeping it strong by raising interest rates.

Japan’s massive debts, which are the largest in the world, have kept the yen on an unsound footing.

Strong U.S. defense of Japan, South Korea, Saudi Arabia, Kuwait, Qatar and the United Arab Emirates make it in their interests to protect the dollar.

Did S&P Downgrade Your Bank? | The Daily Capitalist

dailycapitalist.com11/30/11

Did S&P Downgrade Your Bank? By Jeff Harding, on November 29th, 2011. S&P issued new ratings for the world's 37 largest banks. Was your bank upgraded or downgraded? As a public service, I have included the entire list. Standard …

S&P: No U.S. Credit Rating Downgrade Despite Supercommittee Fail

www.huffingtonpost.com11/22/11

WASHINGTON — Credit rating agency Standard & Poor's says it will not downgrade the U.S. government's credit rating because a Congressional committee failed to come up with a plan to trim deficits by at least $1.2 trillion …

As you most likely already know, the U.S. had its AAA credit rating downgraded for the first time by S&P, which slammed the nation’s political process and said lawmakers failed to cut spending enough to reduce record deficits.

If you already know the bad news, but don’t know exactly the reasons for the downgrading then maybe watch the vid!

Aug 5, 2011 David Beers, the London-based managing director of sovereign credit ratings at Standard & Poor’s, talks with Bloomberg’s Tom Keene about S&P’s downgrade of the U.S. credit rating.

It’s a pity that David Beers stammers and says so many “ahs”, but it’s perhaps understandable because he’d never been in such a hot-seat before.

Just imagine the heat that he’s getting!