Sentences with phrase «debt downgraded by»

Bonds and bond funds will decrease in value as interest rates rise and are subject to credit risk, which refers to the possibility that the debt issuers may not be able to make principal and interest payments or may have their debt downgraded by ratings agencies.
Fast forward to April 2012 and once again GE finds its senior unsecured debt downgraded by Moody's, this time to Aa3 from Aa2.

Not exact matches

«But Clinton is convinced that most American voters did not intend to greenlight a radical anti-govenrment agenda and were appalled by the near default on U.S. debt and the downgrading of U.S. Treasuries.
While both plans would increase the debt ceiling, ratings agencies have said a short - term increase such as the one proposed by House Republicans may not be enough to protect the U.S. from a ratings downgrade.
There were, among others, the debt ceiling standoff - cum - rating downgrade of 2011 and the fiscal cliff scare of late 2012, followed by awfully - timed tax hikes and spending cuts earlier this year.
Obama's jobs plan (speech transcript) has to win the approval of the same debt hawks in Washington who recently gave Standard & Poor's an excuse (read the press release here) to downgrade America's credit by threatening to not raise the nation's debt ceiling.
A downgrade by a credit rating agency usually means investors will demand a higher interest rate when a company goes to raise cash by issuing bonds or other debt.
Conference Board officials speculated the drop may be a consequence of the debt - ceiling debate and the subsequent downgrade of America's credit rating by Standard & Poor's.
TORONTO — Fitch Ratings downgraded Ontario's long - term debt rating Friday, highlighting «risks» on the path to the Liberal government's target of balancing the budget by 2017 - 18.
The latest cause for worry, as we write, is the warning by Standard & Poors that Italy's sovereign debt rating of A + is at risk (a one - in - three chance) of being downgraded in the next 2 years, due to doubts about the success of the government's debt - reduction program.
Combining this with poor sales growth results in a dismal outlook for earnings 3) the pressure on earnings will continue to hurt capital spending, which is usually just a magnified image of earnings, 4) the same factors will continue to raise default rates, causing earnings problems and debt downgrades among banks and financial companies, 5) earnings shortfalls will also lead to continued job cutbacks, with the unemployment rate rising to at least 5.5 % (indeed, once the unemployment rate has advanced by 0.5 % from its lows, it has never reversed until rising by least 1.5 % off those lows).
The lack of discipline and fiscal responsibility in Washington led to a downgrade of the nation's sea of debt by Standard & Poor's.
In the latest report issued by Moody's Investors Service on Wednesday, the internationally famous credit rating agency downgraded its outlook on China's credit rating from «stable» to «negative,» while affirming the still - respectable Aa3 grade on its sovereign debt.
The eventual downgrade to junk, aka non-investment grade, will make IL debt ineligible for investment for some of their major institutional investors (one of which has already called for a boycott of Illinois debt) which are restricted by mandate to purchase only investment grade muni bonds.
The credit rating agency said the downgrade, which affects about $ 975 million of debt, was prompted by a growing number of lawsuits, federal and state probes, and Michigan legislation that could all hurt the university's finances.
A downgrade on debt issued by the United States would have less severe consequences than a default, which takes places when a government fails to pay its creditors.
China's credit rating was downgraded one notch to A + by ratings agency Standard & Poor's (S&P), which cited increased economic and financial risks, following the significant rise in the country's debt levels since the global financial crisis.
Moody's Investors Service announced it would review «for possible downgrade» the credit ratings of five states, including Maryland, that could be hit particularly hard if Congress fails to raise the nation's debt limit by the Aug. 2 deadline and defaults on its financial obligations.
We remain concerned that if the U.S. continues the trend of a rising debt / GDP ratio, it increases the chances of a sovereign - debt credit downgrade by the credit ratings agencies.
First, our quickly escalating debt / GDP ratio puts the U.S. sovereign credit rating at risk for a future downgrade by some rating agencies, if left unchecked.
Collectively, these seven countries have been downgraded by a combined 41 notches, and each Moody's downgrade always has cited debt as one of the factors (Table 1).
Already Buhari has started giving excuses for the abysmal performance.He attributed the quagmire to drop in the price of oil globally and cleverly laid the blame on the doorsteps of all Nigerian accusing them of relying solely on oil.All renowned rating agencies including fitch continue to downgrade Nigeria ever since Buhari took over and it is projected that Nigeria will not be able to repay its debt obligations.Fitch for instance downgraded Nigeria's longterm foreign currency issuer default rating to B + from BB - and longterm local currency IDR to BB - from BB.The general position expressed by almost all the Briton wood institutions is that Nigeria's fiscal and external vulnerability has worsened under Buhari and it is projected that the government's general fiscal deficit could grow up to 4.2 % by the end of 2016 after averaging 1.5 % under the previous regime.A recent capital importation report by Nigeria Bureau of Statistics confirms that, last year, the country recorded total inflow of capital into the economy stood at $ 9.6 billion which was a 53 % drop from previous year and the lowest recorded total since 2011.
In light of the considerable uncertainty around the economic and fiscal outlook, including the risks posed to economic recovery by ongoing financial tensions in the eurozone and against the backdrop of a still large structural budget deficit and high and rising government debt, the Negative Outlook indicates a slightly greater than 50 % chance of a downgrade over a two - year horizon.»
Instead, I will offer you a piece written by Michael Lewis in Boomerang (Travels in the New Third World), on what the world did when Standard & Poor downgraded their rating on US debt:
«The latter included China's stock market collapse and its global repercussions and effects on commodity prices; the Aug. 11 devaluation of the renminbi; the downgrade of Brazilian debt to junk status by Standard and Poor's on Sept. 9; and the major uncertainties surrounding the possible increase of the U.S. Federal Reserve funds rate.
Markets were mostly unfazed by the U.S. debt downgrade.
In an acknowledgement of the glaringly obvious, Fitch downgraded Japan's credit rating by a notch on Monday, citing Japan's ballooning pubic debt.
The downgrade could add up to 0.7 of a percentage point to Treasuries» yields over time, increasing funding costs for public debt by some $ 100 billion, according to SIFMA, a U.S. securities industry trade group.
Last week's bank downgrade by Moody's Investor's Services put a spotlight on the extreme levels of Canadian household debt, which now clock in at nearly 170 % of disposable income.
A tried to explain to him that by the close of the day (6 hours from when he wanted to sell) all of the negative information surrounding the debt downgrade, European Debt Crisis, etc, would already be reflected in the stock market prices when his stock mutual funds were unloadebt downgrade, European Debt Crisis, etc, would already be reflected in the stock market prices when his stock mutual funds were unloaDebt Crisis, etc, would already be reflected in the stock market prices when his stock mutual funds were unloaded.
Debt obligations are subject to credit risk, as they can be downgraded by rating agencies, go into default, or affected by management action, legislation, or other government actions that may in turn reduce the issuers» ability to pay principal and interest when due.
Debt obligations are subject to credit risk, as they can be downgraded by rating agencies, go into default, or be affected by management action or by legislation or other government action that may reduce the issuers» ability to pay principal and interest when due.
Its fortunes reversed last year, as the securities it invests in, known as collateralized debt obligations, plunged in value amid the credit crunch and downgrades by ratings firms.
The eventual downgrade to junk, aka non-investment grade, will make IL debt ineligible for investment for some of their major institutional investors (one of which has already called for a boycott of Illinois debt) which are restricted by mandate to purchase only investment grade muni bonds.
During 2007, the value of the Company's credit derivative contracts were affected predominantly by changes in credit spreads of the underlying reference obligations» collateral and ratings downgrades of securities backing collateralized debt obligations.
A security's value may also be affected by the possibility that issuers of debt obligations will not pay the Fund interest or principal, or that their credit rating may be downgraded by a ratings agency.
As a result of all of this, the stock of the company dropped over 30 % from before the news broke, and its debt has been downgraded to junk status by several rating companies.
GM and GMAC debt are only one notch above junk at S&P, and I can tell you that you will have a hard time selling debt if you ever do get downgraded by S&P.
Fallen angel bonds, which can be corporate, municipal or sovereign debt, have been downgraded by a rating service such as Standard & Poor's, Fitch, or Moody's Investors Service.
There have been instances in the past where funds have held questionable debt instruments which have been downgraded by credit agencies later.
Despite the downgrade of U.S. government debt by Standard & Poor's that occurred in 2011, the market still assigns a higher default risk to corporations over the U.S. government.
> Moody's: Sotheby's pushes further into lending; credit rating could suffer moodys > Sotheby's Debt Spike Could Lead to Rating Downgrade by Moody's bloomberg
Bloomberg clients: We'll be doing a TOPLive Q&A on Thursday, June 22 at noon ET, moderated by Martin Z. Braun, in which you can ask Joe Mysak questions about the latest with Connecticut, its debt downgrades, budget deficit and more.
Despite the Standard & Poor's downgrade of U.S. debt, a worsening European sovereign debt crisis and rising stock market volatility, the U.S. economy continues to expand and create new jobs, supported by strong consumer spending and business investment.
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