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Moody's has downgraded the credit rating of 12 UK financial firms including Lloyds TSB, RBS, Nationwide and Santander UK.
Moody's said it now believed the UK government was less likely to support some firms if they got into trouble.
However, the firm emphasised that the downgrades did not "reflect a deterioration in the financial strength of the banking system".
Moody's also downgraded nine Portuguese banks, blaming financial weakness.
Men are judged by their strength of their opinion and with hopes/dreams money awaits
He who has health has hope; and he who has hope, has everything.
Literal meaning: If you were generous to a generous person you would own him; if you were generous to a mean person he would rebel on you.
Metaphoric meaning: A good person remembers a favor, a bad person does not.
Chinabot is in full fail mode, after a sticksave attempt to save the currency following the Italian downgrade by Fitch was monkeyhammered with the Spanish downgrade which was not only two notches, but sent the country's rating to below that of S&P and Moodys. Adding fuel to the fire is an errant comment from Merkel who has said that Eurobonds are "absolutely the wrong way to go", and lastly, a last minute notification from Fitch which goes for Trifecta by saying that Portugal remains on outlook negative, and the result is visible on the attached chart.
Originally posted by DangerDeath
Portugal downgraded by Fitch... BBB-
www.marketwatch.com...edit on 7-10-2011 by DangerDeath because: (no reason given)
CHICAGO (MarketWatch) -- Fitch Ratings on Friday maintained Portugal's local- and foreign-currency issuer default ratings at 'BBB-' and its short-term rating of 'F3' on rating watch negative (RWN).
Yesterday, during a conference organized by Bank of America titled "Banking & Insurance CEO Conference", whose key purpose was to defend insolvent Italian banks such as Intesa Sanpaolo (which was downgraded the very same day by Moody's) against the evil market and people spreading destructive truths, something grotesquely surreal happened. Specifically, Slide 9 from the prepared slide-deck happened. "What is Slide 9" you ask? Basically, it is Intesa's core defense of its "viability" which presents the EBA Stress Test result, according to which its Core Tier 1 ranks "among the best under the adverse scenario." Who is the best? Seek and ye shall find. The rest, as they, say is epic history...
Biomedical researchers have lost a respected source of information—and science journalists have lost yet another publication for which they can write—with the news that The Scientist will stop publishing immediately. The news comes just after the magazine celebrated its 25th anniversary with a special issue.
The latest figures from the Bank of Spain show that the net debt-the difference between what foreigners due to Spain and which in turn owes Spain abroad, not only not reduced but increased. In fact, at the end of the second quarter of 2011 for the first time broke the trillion euro barrier. In relative terms, this means a foreign debt equivalent to 93.7% of GDP, six points more than in 2010.
International Investment Position of Spain was, in particular, at 1.02 trillion euros, the highest ever level. In gross terms, external debt also has picked up , to 1.77 trillion euros, the second worst record in the series, surpassed only very slightly, and by data from the first quarter of 2010. The cause? The increased borrowing by the public and the financial system.
As a result of these developments, Spain's foreign debt now accounts for 163% of GDP. Spain, thus, has become the second country in most major foreign debt of the world, behind only the U.S., as recently published McKinsey . Below are Australia, Brazil and Italy. The ranking of Mckinsey, in any case, does not include Portugal, which, according to data from the central bank, would be over Spain, although its weight in the global economy is much smaller.
The events in question are, as Reuters reports, that 1) "Dexia's Funeral Will Be Announced On Sunday" and, as Bloomberg reports, that 2) Slovakia’s ruling Freedom and Solidarity party won’t back the overhaul of the European bailout mechanism after Prime Minister Iveta Radicova rejected the party’s conditions for approval, a lawmaker said.
Earlier today, Reuters reported that the final solution for Dexia is imminent. "The governments of France, Belgium and Luxembourg reached agreement on Sunday on a rescue package for Dexia , which will be put to the stricken Franco-Belgian bank's board later in the day for approval. "The governments... have reaffirmed their solidarity in finding a solution to secure the future of Dexia," said a statement from the office of Belgium's caretaker Prime Minister Yves Leterme. "The suggested solution, which is also the result of intense consultations with all partners involved, will be submitted to Dexia's Board of Directors for approval." Sure enough, from Dow Jones:
- GOVERNMENTS AGREE TO NATIONALIZE 100% OF DEXIA'S BELGIAN BANK
We are waiting for more details but with that we have Belgium-Dexia CDS compression, an imminent Belgian rating downgrade, and the unleashing of the completely unpredictable domino effect.