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Moody’s downgrades UK credit rating to Aa3 from Aa2, outlook stable

  
  Analysis
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Moody’s cuts the United Kingdom

Boris Johnson
This isn’t entirely unexpected but you hate to see it. Fitch recently affirmed the UK at AA-, which is the equivalent of Aa3. S&P remains one notch higher at AA but it’s under review.
Moody’s cited three reasons for the sovereign downgrade:

(more…)

S&P Lowers Italy Outlook To Negative

  
Analysis, Education
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First Credit Agricole, now Italy….Maestro: the EUR take down orchestra is reaching the fortissimo cadenza. Next up: the glissando.

Overview

  • In our view Italy’s current growth prospects are weak, and the political commitment for productivity-enhancing reforms appears to be faltering.
  • Potential political gridlock could contribute to fiscal slippage.
  • As a result, we believe Italy’s prospects for reducing its general government debt have diminished.
  • We have therefore revised the rating outlook on Italy to negative, implying a one-in-three chance that the ratings could be lowered within the next 24 months.
  • We have also affirmed the ‘A+/A-1+’ sovereign credit ratings on Italy. (more…)
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