downgrade Archives - the patient investor

January 15, 2012

Agenda: Greek Situation Is Most Serious of Latest Euro Crisis – WSJ.com

Friday provided the markets with two reminders that the euro crisis hasn’t gone away. The decision by Standard & Poor’s to downgrade nine members of the euro zone, including France being stripped of its Triple-A rating and Italy being downgraded to Triple-B, had been widely expected.

But the collapse of the negotiations between Greece and its private-sector bondholders over a voluntary write-down of its debt wasn’t anticipated. The International Institute of Finance, which is negotiating on behalf of bondholders, said it hadn’t been able to agree a deal.

via Agenda: Greek Situation Is Most Serious of Latest Euro Crisis – WSJ.com.

December 8, 2011

Pullout from U.S. Stock Funds Crosses $130B

Investors have now pulled more than $130 billion out of mutual funds that invest long term in United States stocks, since May 1.

…..In the six months ending October 31, $114.8 billion already had been pulled out of U.S. stock funds. The peak was in August, when Standard & Poor’s downgraded the rating of U.S. government debt. That month $26.3 billion was pulled out. But the pullout has stayed above $14 billion every month since.

via Pullout from U.S. Stock Funds Crosses $130B.

November 9, 2011

Moody’s Downgrades South Africa

Moody’s rating agency changed its credit rating outlook from stable to negative for South Africa Wednesday, expressing concerns that politicians overseeing the continent’s largest economy won’t be able to stick to strict fiscal policies.

Moody’s has said it fears commitment to low budget deficits could be undermined by pressure from factions of the governing African National Congress party, its labor movement supporters and a population facing high rates of poverty and unemployment. The agency also said a debate driven by the party’s popular youth leader over whether mines should be nationalized is scaring investors.

via Moody’s Downgrades South Africa.