And The Euro Downgrade Hits Just Keep On Coming, This Time Fitch - News and Current Events | futures io social day trading
futures io futures trading


And The Euro Downgrade Hits Just Keep On Coming, This Time Fitch
Updated: Views / Replies:248 / 0
Created: by Quick Summary Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

And The Euro Downgrade Hits Just Keep On Coming, This Time Fitch

  #1 (permalink)
Quick Summary
And The Euro Downgrade Hits Just Keep On Coming, This Time Fitch

Never a dull Friday when dealing with continents that have a terminal solvency, pardon, liquidity crisis.
  • FITCH PLACES BELGIUM, SPAIN, ITALY, IRELAND, SLOVENIA AND CYPRUS ON RATING WATCH NEGATIVE
Shockingly, French-owned Fitch has nothing to say about... France.

Full statement:

FITCH PLACES BELGIUM, SPAIN, SLOVENIA, ITALY, IRELAND AND CYPRUS ON RATING WATCH NEGATIVE

Fitch Ratings-London-16 December 2011: Fitch Ratings-London-16 December 2011:
Fitch Ratings has placed the ratings of all investment grade rated eurozone sovereigns and their debt with Negative Outlook onto Rating Watch Negative (RWN). The euro area country ceiling of 'AAA' is unaffected. The rating actions are as follows:

- Belgium 'AA+'/'RWN from 'AA+'/Negative Outlook ('F1+' Unaffected)

- Spain 'AA-'/'F1+'/RWN from 'AA-'/'F1+'/Negative Outlook

- Slovenia 'AA-'/'F1+'/RWN from 'AA-'/'F1+'/Negative Outlook

- Italy 'A+'/'F1'/RWN from 'A+'/'F1'/Negative Outlook

- Ireland 'BBB+'/'F2'/RWN from 'BBB+'/'F2'/Negative Outlook

- Cyprus 'BBB'/'F3'/RWN from 'BBB'/'F3'/Negative Outlook

The RWN indicates that the above ratings are under active review and are subject to a heightened probability of downgrade in the near-term. Fitch expects to complete the review by the end of January 2012. If the review concludes that a downgrade is warranted, it is likely be limited to one or two notches.

Following the EU Summit on 9-10 December, Fitch has concluded that a 'comprehensive solution' to the eurozone crisis is technically and politically beyond reach. Despite positive commitments by EU leaders at the Summit, notably the decision to accelerate the creation of the European Stability Mechanism (ESM) and to place less emphasis on private sector involvement (PSI), the concerns held by Fitch prior to the Summit remain pressing and have not been materially eased by the Summit outcome (also see, 'Summit Does Little To Ease Pressure on eurozone Sovereign Debt,' 12 December). Of particular concern is the absence of a credible financial backstop. In Fitch's opinion this requires more active and explicit commitment from the ECB to mitigate the risk of self-fulfilling liquidity crises for potentially illiquid but solvent Euro Area Member States (EAMS).

Fitch recognises that the policy authorities in all of the countries with sovereign ratings subject to review have embarked upon significant fiscal consolidation and structural reform and these efforts will be taken into account in the review. However, the systemic nature of the eurozone crisis is having a profoundly adverse effect on economic and financial stability across the region and for some EAMS poses near-term risks that are beginning to dominate the sovereign-specific risk fundamentals. Today's announcement is focused on those sovereigns that are potentially vulnerable to the worsening external economic and financial environment as indicated by previous negative rating actions and rating Outlooks.

The RWN is prompted by the following risk factors:

- In the absence of greater clarity on the ultimate structure of a fundamentally reformed Economic and Monetary Union and the recognition by political leaders of the potential for an EAMS to leave the eurozone, Fitch will review its assessment of the balance of risks associated with eurozone membership, especially for sovereigns potentially subject to funding stresses.

- While acknowledging the extraordinary measures the ECB has adopted to provide liquidity to the European banking sector, its continued reluctance to countenance a similar degree of support to its sovereign shareholders undermines the efforts by EAMS to put in place a credible financial 'firewall' against contagion and self-fulfilling liquidity and even solvency crises.

- The intensification of the eurozone crisis since July constitutes a significant negative shock to the region's economy and the stability of its financial sector with potentially adverse consequences for sovereign credit profiles across the region, most immediately for those placed on RWN today.

- In the absence of a 'comprehensive solution', the crisis will persist and likely be punctuated by episodes of severe financial market volatility that is a particular source of risk to the sovereign governments of those countries with levels of public debt, contingent liabilities and fiscal and financial sector financing needs that are high relative to rating peers.

In light of these heightened risks, Fitch will re-consider the assumptions and analysis that underpin its current sovereign ratings of Belgium, Slovenia, Spain, Italy, Ireland and Cyprus to ensure that the above risk factors are appropriately reflected in its sovereign ratings in accordance with its sovereign rating methodology.

The focus on investment grade rated sovereign governments with Negative Outlooks reflects previous research and analysis that indicates specific weaknesses that render them especially vulnerable to the intensification of the eurozone crisis.
However, the outcome of the review will also incorporate Fitch's current assessment of the strength of their underlying economic and credit fundamentals as reflected in their current sovereign ratings as well as recent policy measures adopted at the national level.



More on ZeroHedge...

Reply to share your thoughts on this current event.


Reply



futures io > > > > And The Euro Downgrade Hits Just Keep On Coming, This Time Fitch

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Euro-Area Inflation Steady; Unemployment Hits 13-Year High kbit News and Current Events 0 November 30th, 2011 03:36 PM
Even as Governments Act, Time Runs Short for Euro Quick Summary News and Current Events 0 November 13th, 2011 08:10 PM
Goldman Releases Q&A On Nominal GDP Targetting, Says It Is Not Coming For A Long Time Quick Summary News and Current Events 0 November 12th, 2011 09:50 PM
Prediction From BofA...Another U.S. downgrade coming soon kbit News and Current Events 0 October 22nd, 2011 10:03 PM
US Rating 'Will Remain Under Pressure' for Some Time: Fitch Quick Summary News and Current Events 0 August 2nd, 2011 07:50 PM


All times are GMT -4. The time now is 09:36 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-11 in 0.07 seconds with 19 queries on phoenix via your IP 54.226.227.175