S&P Revise Italy’s Outlook to Stable from Positive Rating

S&P Global Ratings agency said on Tuesday it had revised its outlook on its BBB/A-2 ratings on Italy to stable from positive. The change reflects impact of the global effect on Italy’s economy and on sovereign’s fiscal position. The Italian Prime Minister Draghi resigned last week and there will be new elections later in the year. The ratings agency affirmed all of its sovereign ratings on the country and said the stable outlook balances rising risks to the economy and … Continue reading “S&P Revise Italy’s Outlook to Stable from Positive Rating”

China To Allow Foreign Investors to Trade Exchange Market Bonds in Plea to Stop the Bleeding

Chinese bonds saw outflows since the yield differential shrank with US rates rising coupled with the risks associated with China’s tacit approval of Russia invasion of the Ukraine. Global funds slashed their holdings of Chinese bonds. Goldman Sachs Group Inc. trimmed its bond inflow forecast for China to $100 billion this year, from as much as $140 billion. In response China will allow foreign institutional investors to trade bonds on its smaller exchange market. The PBOC said the move would … Continue reading “China To Allow Foreign Investors to Trade Exchange Market Bonds in Plea to Stop the Bleeding”

Ukraine Credit Rating Cut Further by S&P on Protracted War and Nation Reliant on Donations

Global ratings agency S&P cut Ukraine’s credit rating further Friday, in a move that was not unexpected and follows Moody’s earlier move in the week. It also assigned a negative outlook, saying risks from the military conflict could undermine the government’s ability to meet its debt obligations. The moves flow on from S&P and Fitch swiftly cutting Ukraine on default worries. Russia’s debt was cut to junk back then. The International Monetary Fund is exploring all options to aid Ukraine … Continue reading “Ukraine Credit Rating Cut Further by S&P on Protracted War and Nation Reliant on Donations”

Russian Central Bank Slashed Key Interest Rate to 11% as Inflation Pulls Back From 20-year highs on Rouble Strength

Russia’s Central Bank (CBR) in a fight to arrest the plummeting Russian economy smashed from impacts from the invasion of Ukraine. The CBR has now slashed its key rate by a cumulative 900 basis points since February, the rate was cut to 14% in April, weeks after an emergency rate increase to 20% triggered by Russia’s move to send tens of thousands of troops into Ukraine on Feb. 24 and the Rouble’s collapse. Since than capital controls have seen the … Continue reading “Russian Central Bank Slashed Key Interest Rate to 11% as Inflation Pulls Back From 20-year highs on Rouble Strength”

Russia Credit Rating Slashed to Junk by S&P and Fitch, Moody’s Issues Junk Warning

Credit rating slashed Russia’s credit rating Friday. S&P and Fitch lowering Russia’s rating to ‘junk’ status, Moody’s said it is putting it on review for a downgrade to junk. At the same time S&P and Fitch swiftly cut Ukraine on default worries. The International Monetary Fund is exploring all options to aid Ukraine with further financial support, said its head, Kristalina Georgieva. The Russian declaration of war on Ukraine has ravaged both countries finances and people with severe consequences for … Continue reading “Russia Credit Rating Slashed to Junk by S&P and Fitch, Moody’s Issues Junk Warning”

New Zealand To Issue Sovereign Green Bonds To Support Climate Transition

New Zealand government announced it’d be issuing a ‘green bond’ to fund low-emission or environmental projects such as renewable energy or reforestation, have increasingly become part of climate financing around the world including the UK, Germany and France. The ‘green bonds’ are issued at lower interest rates (relative to conventional govt bonds) to money managed by sustainable funds & those with ESG (environment, social and sustainability) mandates. In 2020 the global green bond market reached a cumulative issuance milestone of … Continue reading “New Zealand To Issue Sovereign Green Bonds To Support Climate Transition”

Fitch Warns United States Could Lose ‘AAA’ Over Political Brinksmanship Over Debt Limit

Rating agency Fitch warned debt limit games could put US AAA rating at risk. If US debt limit were not raised or suspended in time, political brinksmanship and reduce the financing flexibility could increased risk of sovereign default United States of America at ‘AAA’

Japan Affirmed by Fitch at ‘A’ With Negative Outlook

Japan was affirmed by rating agency Fitch at ‘A’ with a negative outlook adding it expects the Bank of Japan inflation target of 2% to remain out of reach. Fitch expects growth of 2.5% in 2021 and 3.0% in 2022, as the economy recovers from a 4.6% contraction in 2020.

US Sovereign Rating Affirmed AA+ With Stable Outlook Stable By S&P

Standard and Poors rating agency affirmed that the US sovereign ratings remain ‘AA+/A-1+’ and the outlook remains stable. The US is thundering to increasingly massive debt levels since the global pandemic. The S&P says sovereign stability is based on strong American institutions, a diversified and resilient economy, extensive monetary policy flexibility

Fitch Affirms United States at ‘AAA’ BUT With Negative Outlook

Rating agency Fitch reaffimed the United States of America at ‘AAA’ BUT with Outlook Negative Friday. This comes after in March it warned of high fiscal deficits and debt which were already rising even before coronavirus are starting to erode these credit strengths.