Turkey’s credit rating has been lifted to investment grade by Moody’s for the first time in two decades, in recognition of reductions to its debt and current account deficits.
Changes in the money market industry will continue, as regulatory developments coupled with market dynamics force some money market funds (MMFs) to close or consolidate, says Moody’s Investors Service.
Moody’s Investors Service has published a report focused on two factors it says can impact the availability of information required to predict stress scenarios in any given country.
Basile Fémelat, associate at Baker and McKenzie Luxembourg argues that new law to regulate rating agencies has not fully addressed investors’ blind reliance on them, nor some outstanding structural conflicts.
Corporate bond issuance has risen significantly this year, giving fixed-income investors greater opportunities for diversifying their portfolios across issuers and sectors, says Moody’s Investor Services.
Finanstilsynet, the Danish FSA, has said that local banks remain strong after the European Banking Authority published the final results of its EU-wide capital exercise.
Moody’s Investor Services says failure by by the US Congress to achieve policies designed to reduce the country’s sovereign debt level will leave it no choice but to issue a downgrade, possibly by early 2013.
Moody’s Investors Service has maintained a stable outlook on asset managers, money market funds and closed-end funds in 2012 but the rating agency has changed its outlook on bond funds to negative.
The UK’s prized ‘AAA’ credit rating has been put on “negative outlook” by Fitch, the second ratings agency to warn of a possible economic downgrade.
Pohjola Bank’s financial strength rating has been put on notice of a possible two-notch downgrade, Moody’s Investors Service warns.
Sweden’s economic strength, high GDP per capita, resilient and diversified economy are all factors behind Moody’s decision to retain an Aaa rating in its latest annual report on the country.
Silvio Berlusconi reacted angrily a few weeks ago to S&P’s downgrade of his country’s sovereign debt, but this time Moody’s move came to him as less of a surprise.