Wednesday, June 4, 2008

Whoopsie

Ambac, MBIA Face Moody's Cuts

Moody's Investors Service signaled a grim ending to a long-running credit market debate Wednesday, warning it will likely strip MBIA Inc. and Ambac Financial Group Inc. of their key AAA insurer ratings. Moody's said it will most likely downgrade the ratings of each company's insurance units by one to three notches, leaving them in the Aa range. Moody's also said it's possible MBIA's insurer ratings could be dropped at least four notches into the single-A category. The highly specific warning sent shudders through credit investors. A downgrade could trigger follow-on cuts to ratings on billions of dollars worth of bonds ...

Posted by lvmreader @ 10:48 PM (2654 views)
Please complete the required fields.



2 thoughts on “Whoopsie

  • So the players are finally ready to deal with what the consequences of downgrades that should have occurred months ago. Just look at what Ambac, MBIA et al share prices and CDS have been doing… this confirms what the market knows already. Nonetheless, the second wave of the crunch starts here; expect these crooks to be filing bankruptcy by year’s end.

    Reply
    Please complete the required fields.



  • I can’t believe how little fuss this has been met with.

    This is HUGE. Moody’s has a decision to make – downgrade the monolines and attempt to shore up it’s own creditbility or risk the end of confidence in credit ratings.

    Both of which will cause massive shockwaves in the credit derivatives industry.

    Effectively, another party has ended and the music has stopped.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>