The ratings agency S&P Global Ratings reaffirmed its AAA long-term sovereign credit rating and A-1+ short-term rating for Australia. S&P issued a note saying Australia should avoid a recession amid record low unemployment and elevated commodity prices, even as the economy slows this year amid higher interest rates. The RBA is expected to announce another 25 basis point increase in the official cash rate after its board meeting next Tuesday. S&P said Australia’s ratings were supported by “strong institutions, which … Continue reading “Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.”
Germany’s annual consumer price inflation fell to 8.6% in December 2022, from 10% reported in November and below the market consensus of 9.1% preliminary estimates showed. Inflation has been running rampant mainly due to energy costs which has led the ECB to raise rates aggressively and has impacted the German Bund sending yields to levels not seen since 2011. It was the inflation lowest rate since August. The German government with a one-time payment in December lowered household natural gas … Continue reading “Germany Inflation Falls in December with Government Help on Natural Gas Bills”
The US Securities and Exchange Commission on Monday charged S&P Global Ratings with conflict-of-interest violations. The SEC said the ratings agency violated conflict of interest rules designed to prevent sales and marketing considerations from influencing credit ratings. In the same press conference, the SEC announced S&P Global had settled for $2.5 million quickly putting the story to bed would be the hope. There was no word on why the SEC has been deathly quiet on the FTX fraud, collapse and … Continue reading “S&P Global Ratings Settles Conflict of Interest Violations with SEC”
Fitch issued a note on Uruguay after the narrow victory of Luis Lacalle Pou of the center-right National Party after 15 years of rule by the center-left Frente Amplio. Pou faces the challenge of reducing a large fiscal deficit in the face of low growth.
Fitch Ratings is out with a note lowering its outlook on Japanese insurers. They lowered their rating to stable from positive. See biggest risks for Japanese insurers will continue to stem from financial markets in 2020.
Germany’s states; Saxony, Brandenburg, Hesse, Bavaria, North Rhine Westphalia and Baden Wuerttemberg all released their monthly inflation rates showing continued deflationary pressures, though there is some inflationary pricing in the core, particularly in Saxony to bring a smile to the ECB.
The ratings agency S&P issued a note saying the major fiscal stimulus in Australia flagged by the Australian federal government could place the countries AAA rating under pressure. The S&P noted; “If this fiscal stimulus involves substantial spending initiatives and changes the trajectory of the budget, then doing so could increase downward pressure on our rating and outlook for Australia” “While spending initiatives are likely to support the economy, they’re also likely to weaken Australia’s fiscal flexibility to respond to … Continue reading “Major Fiscal Stimulus in Australia May Pressure S&P AAA Rating”
Fitch Ratings affirmed Germany’s Sovereign rating and long term IDR’s and unsecured foreign and local currency bonds at ‘AAA’ with a stable outlook as expected. Germany ran a surplus last year and Germany’s fiscal position is expected to continue to improve.
Fitch Ratings affirmed Sweden’s ‘AAA’ rating saying it reflects its high per capita income, persistent budget surpluses, declining public debt, strong governance and human development indicators, and a track record of sound economic policy.