Wednesday, April 15, 2009

A another view of the downgrades – with some response from the building societes

Building societies' financial ratings downgraded

Building societies holding the accounts of millions of British savers were savagely downgraded to near junk-bond status by ratings agency Moody's today. In a shock warning that the sector is heading for potentially massive losses from the housing market crash...

Posted by hotfoot @ 05:00 PM (526 views)
Please complete the required fields.



One thought on “A another view of the downgrades – with some response from the building societes

  • FT reported it this way ,

    Moody’s said it had changed its assumptions about UK house prices in the past few months.(no green shoots then?) It also stress-tested the mutuals’ commercial loan portfolios, where it expects the performance to worsen during the next few years.

    Marjan Riggi of Moody’s said: “What’s different is the loss expectation is higher than it was three or four months ago looking at the economic forecasts on housing.

    “Last year we were looking at mortgage lenders and stress-testing a 25 per cent fall in house prices. In the past three or four months that assumption has changed to a 40 per cent fall, which is a considerable difference.”

    On Wednesday Adrian Coles, director-general of the Building Societies Association, said Moody’s had included an extreme stress test of a 60 per cent fall in house prices

    THE “ASSUMPTION HAS CHANGED TO A 40% FALL “. NO GREEN SHOOT THEN!

    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Your email address will not be published.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>