Sunday, December 7, 2014

Rating: Standard & Poor’s cuts us – Trend-online.com

Rating: Standard & Poor's cuts us – Trend-online.com

Focus operating markets

Last night the rating agency Standard & amp; Poor’s downgraded Italy by lowering its rating from BBB to BBB -.

Some believe that excessive negative sentiment appears exaggerated, but an economist is putting some time warning their customers from the financial systemic risk. Tuesday, December 9 at 18.00 will explain how to earn from a possible crisis including psychological aspects. We wait. Sign up here.

We are on the same level of many emerging countries (Morocco, Azerbaijan, etc.), And for a developed country that does not is normal.

The last change to Italy dated back to July 2013, and yet still a downgrade by S & amp; P.

Yesterday, the agency said that while acknowledging that “the government is gradually moving towards the start of some important reforms”, believes that “a sharp increase in the debt, accompanied by a perennially weak growth and low competitiveness, is not compatible with a BBB rating” according to their own criteria .

While noting some progress with the Jobs Act, are of the opinion that “the measures envisaged will not create jobs in the short term. As a result, the already high unemployment rate could worsen until they arrive a sustainable economic recovery “.

In addition, in relation to the period 2014-2017, have lowered their average estimates of real GDP growth from 1% to 0.5%.

An average economic growth of 0.5% until 2017, especially knowing the starting point, would represent a very disappointing recovery.

Here we look at the updated position of the ratings we were assigned the most famous agencies (Moody’s, Standard & amp; Poor’s and Fitch):

All three judgments are quite close to the category speculative grade.

A brief aside: some operators define indiscriminately all the bonds in that category as’ junk ‘, regardless of the position which they occupy in the same.

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