The previous post on credit card
issuer default rates deliberately avoids the question of ethics in lending.
Oct 4 - Fitch Ratings has affirmed
the Issuer Default Rating for Expedia, Inc..
Fitch Ratings has today affirmed Woodside Petroleum Ltd's long - term
issuer default rating as stable, with its senior unsecured rating at BBB +.
(The following statement was released by the rating agency) NEW YORK, November 09 (Fitch) Fitch Ratings has downgraded the ratings of CBL & Associates Properties, Inc. (NYSE: CBL) and its operating partnership, CBL & Associates Limited Partnership, including the Long - Term
Issuer Default Rating (IDR) to «BB +» from «BBB -».
KEY RATING DRIVERS SPG's «A»
Issuer Default Rating (IDR) reflects the company's continued market - leading access to capital, high quality real estate portfolio, cycle - tested m
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.
A foremost global rating agency, Fitch Ratings affirmed a stable outlook on the Foreign Currency, Long Term
Issuer Default Ratings...
April 26 - Fitch Ratings has upgraded the credit ratings of Federal Realty Investment Trust (NYSE: FRT) as follows: —
Issuer Default Rating (IDR) to «A -» from «BBB +»; — Unsecured revolving credit facility to «A -» from «BBB +»; — Senior unsecured notes to «A -» from «BBB +»; — Redeemable preferred shares to «BBB» from «BBB -».
Not exact matches
Main risks: Rising interest
rates could push bond prices down, and the bond's
issuer could
default.
Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest
rate risk (as interest
rates rise, bond prices usually fall, and vice versa) and the risk of
default, or the risk that an
issuer will be unable to make income or principal payments.
Fixed income investments entail interest
rate risk (as interest
rates rise bond prices usually fall), the risk of
issuer default,
issuer credit risk and inflation risk.
While I don't expect a significant deterioration in credit markets next year, conditions are turning less favorable: corporate leverage is higher,
default rates are rising and with oil hovering near $ 40, energy
issuers are at risk.
High - yield bonds represented by the Bloomberg Barclays High Yield 2 %
Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit
rating of Ba1 or BB + (including
defaulted issues) and at least one year to maturity.
A spike in interest
rates makes it harder for
issuers to service their debt, potentially raising
default risk.
Consider these risks before investing: The value of securities in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific
issuer, industry, or sector and, in the case of bonds, perceptions about the risk of
default and expectations about changes in monetary policy or interest
rates.
According to Contopoulos, there have been 13 energy
issuers in
default this year, bringing the
default rate in that sector to 7.3 percent, and he expects more in the next several months.
Higher interest
rates would pressure many
issuers and raise the future
default rate.
Investors holding floating -
rate loans are considered preferred creditors relative to the
issuer's other obligations: If the
issuer defaults, loanholders will be paid before other investors, including bondholders.
Bond investments are subject to interest -
rate risk (the risk of bond prices falling if interest
rates rise) and credit risk (the risk of an
issuer defaulting on interest or principal payments).
Holding an individual bond to maturity will result in the return of principal (assuming the bond
issuer doesn't
default), but those nominal dollars will be worth less with inflation and during periods of higher interest
rates.
These bonds are issued by less - creditworthy companies that carry a higher risk of
default than better -
rated issuers.
Overall,
default rates among junk - bond
issuers are projected to move about 3 percent next year, according to Moody's Investors Service, up from 2.7 percent in the first 10 months of this year.
Universal
default still lives — credit card
issuers may raise interest
rates, even if a card holder's never been late on a payment — but the new
rate may apply only to future purchases, per the CARD Act.
Depending on your credit card company, a number of other factors may cause you to incur the penalty
rates as well, including but not limited to: exceeding your credit limit, or
defaulting on another account with the same
issuer.
The performance of these investments may be adversely affected by tax, legal, legislative, regulatory, credit, political or government changes, interest
rate increases and the financial conditions of
issuers, which may pose credit risks that result in
issuer default.
Consider these risks before investing: Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including perceptions about the risk of
default and expectations about monetary policy or interest
rates), changes in government intervention in the financial markets, and factors related to a specific
issuer or industry.
By buying a short term bond, you significantly reduce your exposure to interest
rate moves, but your credit risk (the risk that the
issuer may
default on its payments) is still there.
High - yield bonds represented by the Bloomberg Barclays High Yield 2 %
Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit
rating of Ba1 or BB + (including
defaulted issues) and at least one year to maturity.
Bonds are subject to interest
rate risk (as interest
rates rise bond prices generally fall), the risk of
issuer default,
issuer credit risk, and inflation risk, although U.S. Treasuries are backed by the full faith and credit of the U.S. government.
Like other bonds,
issuers are
rated so the lower the risk of
default by the government entity, the higher the quality of the bond.
While it may seem overly punitive,
issuers justify the
rate increase based on the increased
default risk they face when cardholders are more than 60 days late on their payments.
The better the grade, the more stable the
issuer and the less risk of a
default, but the lower the interest
rate as well.
While bonds are often referred to as «fixed - income» securities they carry risks such as interest
rate risk (the movement of interest
rates that can positively or negatively affect the value of the bond at redemption) and
default risk (the risk that the bond
issuer will go bankrupt or become unable to repay the loan).
Asset prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including, in the case of bonds, perceptions about the risk of
default and expectations about monetary policy or interest
rates), changes in government intervention in the financial markets, and factors related to a specific
issuer, industry or commodity.
While delinquencies incur late payment fees, cardholders who go into
default may find that they're unable to get credit cards, and if they can, the interest
rate on them is usually very high, since card
issuers will deem them a risk.
«Reliable sources of statistical information do not exist with respect to the
default rates for many of the types of collateral debt securities eligible to be purchased by the
Issuer,» say both the 2005 and 2006 CDO prospectuses backing commercial paper held in the funds.
Stock and bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including, in the case of bonds, perceptions about the risk of
default and expectations about monetary policy or interest
rates), changes in government intervention in the financial markets, and factors related to a specific
issuer or industry.
2012 has started off with a mixed bag of results for many credit card
issuers, as some banks and lenders are seeing their delinquency and
default rates drop, while others are noting an increase.
The lower the credit
rating, the greater the risk that the
issuer could
default on its obligations, or be unable to pay interest or repay principal when due.
The higher
default risk is the chief reason that speculative - grade bond
issuers have to pay higher interest
rates that go hand - in - hand with the so - called credit migration risk (or credit
rating risk), which is part of the credit risk by extension.
Main risks: Rising interest
rates could push bond prices down, and the bond's
issuer could
default.
The higher the
rating (AAA being the highest), the lower the risk; conversely, the lower the
rating, the higher the risk of
default (non-payment) by the
issuer.
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.
Stock and bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including, in the case of bonds, perceptions about the risk of
default and expectations about changes in monetary policy or interest
rates), changes in government intervention in the financial markets, and factors related to a specific
issuer or industry.
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.
From the highest
rated issuers to those near
default, our valuation discipline creates substantial risk - adjusted returns.
Issuers with higher credit ratings generally pay less interest than issuers with lower credit ratings as they have a lower risk of defaulting on their
Issuers with higher credit
ratings generally pay less interest than
issuers with lower credit ratings as they have a lower risk of defaulting on their
issuers with lower credit
ratings as they have a lower risk of
defaulting on their loans.
Credit
Ratings: A downgrade to a bond's
issuer implies analysts believe that the risk of
default has increased.
Not only are they risky but if interest
rates rise the bond
issuer could wind up going into
default and the bonds made worthless.
The risks: American investors in U.S. bonds can be hurt by fluctuating market interest
rates and by
defaults by bond
issuers.