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Posts Tagged ‘rating’

Euro falls as Irish credit rating cut

In Uncategorized on December 20, 2010 at 6:27 am

TOKYO, Dec 20, 2010 (AFP) – The euro fell against other currencies in Asia on Monday on worries over the eurozone’s public finances after Moody’s slashed debt-stricken Ireland’s credit rating, analysts said.

The euro fell to 1.3154 from 1.3185 dollars in New York late Friday and to 110.35 yen from 110.78 yen. The dollar firmed to 84.00 yen from 83.94 yen.

Moody’s Investors Service on Friday cut its credit rating on Ireland by five notches, citing uncertainties over the country’s economy and public finances.

It came a day after European leaders agreed at a Brussels summit to set up a permanent financial stability mechanism from 2013 to shore up the euro amid fears Portugal and Spain may need bailouts after Irish and Greek rescues.

But there was no decision to increase its size beyond the bloc’s temporary 750 billion euro fund or allow it to purchase government bonds, or introduce a common European bond, John Kyriakopoulos of National Australian Bank noted.

“As such, European sovereign debt concerns are likely to linger into the New Year,” he wrote in a note, adding investors needed to watch European bank funding costs.

The failure to enlarge the size of the bailout fund was disappointing “given worries that it is insufficient to cope with the bailout of larger eurozone countries if needed,” said Frances Cheung at Credit Agricole CIB.

The South Korean won fell after South Korea ordered civilians on five border islands to take shelter ahead of a live-fire exercise Monday despite North Korean threats of deadly retaliation.

The unit extended its early losses against the safe-haven US dollar, which in morning trade fetched 1,167.40 won from 1,163.40 earlier.

But the news hardly moved dollar-yen rates with the yen also drawing buying as a safe currency, analysts said.

Source: SGGP

Vietnam’s stock markets drop most since August after Moody’s lowers rating

In Uncategorized on December 16, 2010 at 10:06 am

Vietnam’s benchmark VN-Index, which tracks 271 companies and five mutual funds listed on the Ho Chi Minh Stock Exchange, slumped on December 16 due to bad news on financial markets.

Moody’s Investors Service downgraded Vietnam government’s bond rating to B1 from Ba3, citing the risk of a balance of payments crisis and a drop in foreign reserves as inflation accelerates and the nation’s currency weakens. Along with this decision, the credit rating agency also cut long-term foreign-currency rating of six Vietnamese banks to B2 from B1.

The gauge tumbled the most since August, slashing 2.69 percent, or 13.26 points, to close at 480.21 points.

Among the index members, 28 advanced, 208 retreated, while 40 remained unchanged.

Trading volume stayed on high level as around 80.79 million shares worth VND1.9 trillion changed hands.

Tan Tao Investment Industry Corporation (ITA) led the list of most active shares by volume with 5.54 million shares changing hands.

It was followed by Saigon Securities Inc. (SSI), the country’s largest brokerage, with 5.29 million shares traded.

Saigon Thuong Tin Commercial Bank or Sacombank (STB) ranked third with 3.24 million shares.

Tan Binh Import – Export Joint Stock Company (TIX) nosedived for five straight days, giving up 5.05 percent to VND39,500. The company will pay dividends for the second term of this year in cash at a ratio of 20 percent to its current shareholders on December 30.

Other losers on the city bourse included Binh Dinh Minerals Company (BMC), Southern Rubber Industry Joint Stock Company (CSM), and Dien Quang Joint Stock Company (DQC).

Among a few gainers, seafood producer Vinh Hoan Corporation (VHC) accelerated 4.83 percent to VND30,400.

Mirae Joint Stock Company (KMR) rebounded 4.76 percent to VND8,800.

Viet Nam Joint Stock Commercial Bank for Industry and Trade or Vietinbank (CTG) advanced the fifth day, enhancing 4.72 percent to VND22,200.

The Hanoi’s HNX-Index plummeted 4.29 percent, or 5.17 points, to close at 115.43 points. Trading volume dropped to 57.7 million shares worth VND1.1 trillion.

Meanwhile, the UPCom-Index tripped by 1.02 points to 41.14 points this morning. A total of 123,200 shares changed hands at a value of VND1.31 billion.

Source: SGGP

Moody’s says downgrades BP’s credit rating three notches

In Uncategorized on June 18, 2010 at 12:22 pm

International ratings agency Moody’s downgraded the creditworthiness of BP by three notches on Friday, reflecting “the worsening impact” of the Gulf of Mexico oil spill on the group’s finances.

An oil-soaked bird struggles against the side of an Iron Horse supply vessel at the site of the oil spill off Louisiana on May 9.

“Moody’s Investors Service has today downgraded the senior unsecured ratings of BP and of all long-term debt securities issued by its subsidiaries and guaranteed by BP by three notches to A2 from Aa2,” said a statement.

The downgrades, which follow similar moves this week by Fitch and Standard & Poor’s, will increase the cost of BP’s borrowing as investors demand higher returns for taking greater risk.

Moody’s said that its downgrade “reflects the worsening impact expected from the oil pouring into the Gulf of Mexico from BP’s subsea Macondo well”.

It added: “Moody’s updated assessment is that the spill will have a sustained negative impact on the group’s free cash flow generation and overall financial profile for a number of years.

“This assessment reflects a substantial upward revision of the estimated size of the leak, the continued failure to bring the leaking Macondo well under control, and the mounting costs and claims for damages.

“Moody’s believes that costs for containment, clean-up, litigation and fines are likely to be higher than the rating agency had previously expected in view of the widespread and continuing physical and economic damage.”


Source: SGGP

Moody’s upgrades S.Korea bond rating

In Uncategorized on April 14, 2010 at 7:34 am

SEOUL, April 14, 2010 (AFP) – Global agency Moody’s said Wednesday it has upgraded its rating on South Korea’s government bonds following the country’s exceptional resilience to the global economic crisis.

Moody’s Investors Service said in a statement it has changed the ratings to A1 from A2 and maintains a stable outlook.

“The change has been prompted by Korea’s demonstration of an exceptional level of economic resilience to the global crisis, while containing the government’s budget deficit,” said senior vice president Tom Byrne.

Moody’s said the economy was responding rapidly to the improving global outlook and the government had put policy measures in place which should help sustain economic growth over time.

Source: SGGP

Moody’s gives Vietnam Ba3 credit rating

In Vietnam Economy on January 18, 2010 at 2:55 pm

Credit rating agency Moody’s maintains a positive outlook for Vietnam and forecasts stable prospects, giving it a Ba3 rating, the Ministry of Finance said.

Rating symbols and definition

It is based on the country’s GDP growth rate of 5.32 percent last year and inflation rate of 6.5 percent, the ministry said.
Vietnam’s rating is one grade higher than other countries in the region, with the Philippines getting Ba3/BB and Indonesia Ba2/BB.
The ministry has cooperated with ratings organizations like Moody’s, Standard & Poor’s, and Fitch Ratings for many years now. 

Source: SGGP Bookmark & Share

Vietnam drops five places in WB business environment rating

In Uncategorized on September 10, 2008 at 4:11 pm

Hanoi (VNA) – Vietnam drops five places in the World Bank and the International Finance Corporation’s latest report that ranks 181 economies on the overall ease of doing business.

The country is placed at the 92 nd position in the Doing Business 2009 report, down from the 87 th position in the previous report. It is ranked fifth in Southeast Asia, after Singapore , Thailand , Malaysia and Brunei .

However, the report says Vietnam is one of the 11 Eastern Asian countries with the highest number of business environment reforms in the period between June 2007 and June 2008.

Vietnam ’s reform is reported in the area of getting credit.

“ Vietnam ’s public credit registry now keeps information on record longer, providing financial institutions with more data on the repayment history and debt capacity of potential borrowers,” says the report.

The head of the legal affairs section of the Vietnam Chamber of Commerce and Industry, Tran Huu Huynh, said Vietnam ’s business environment-related reforms remain modest while the “space” for it is still huge.

Huynh also said some countries that also underwent the transformation from a centrally-run to market economy have reformed faster than Vietnam and their positions have improved in the ranking.

He proposed that the report makers further diversify interview subjects to have a more real and overall picture on the Vietnamese business environment.

The “Doing Business 2009” ranks economies based on data in many areas including starting business, dealing with construction permits, employing and dismissing workers, registering property, getting credit, paying taxes and trading across borders.

Singapore , leads the global rankings, followed by New Zealand and the US.-