Moody’s понизило рейтинг греческих облигаций на сумму $28 млрд.
May 12 (Bloomberg) — Moody’s Investors Service lowered 22 billion euros ($28 billion) of Greek bonds backed by loans to consumers and companies as the country adopts austerity measures to qualify for European aid, leaving the notes under review for further downgrades.
The cuts “were prompted by Moody’s expectations of significant pool performance deterioration due to the stressed economic environment in Greece as well as increased operational risk due to the weakened financial strength of Greek banks,” the New York-based ratings company said today in a statement.
The downgraded securities, which are part of 23 transactions, included 10.7 billion euro of notes backed by residential mortgages, 3.9 billion euro of collateralized loan obligations, and an additional 7.2 billion euro of other asset- backed debt, according to the statement. The bonds appear less creditworthy considering “Greece’s austerity package and the resulting impact on the Greek economy and collateral performance,” Moody’s said.
Ratings reductions typically boost the capital needs of bondholders such as banks and insurers and force some investors to sell the debt.
Greece’s economy contracted in the first quarter as the government cut spending and raised taxes in a bid to trim the European Union’s second-biggest budget gap, the Athens-based Hellenic Statistical Authority said today.
Prime Minister George Papandreou, amid soaring borrowing costs, this month promised further wage cuts and tax increases on alcohol, fuel and tobacco in return for emergency loans from the International Monetary Fund and the European Union to stave off default.
Rescue Plan
Under a support package announced this week for troubled European countries, the region’s governments would offer guarantees of 440 billion euros to a special fund, which would then sell debt and use that cash to buy the bonds of nations in need. Another 60 billion euros will come from the EU’s budget and as much as 250 billion euros from the IMF. As part of that broader plan, Spain and Portugal also pledged deeper budget cuts to be outlined this month.
“The Eurozone support measures together with the austerity program will cause the transfer of wealth and income from the household and private sectors to the government sector via the assessment and collection of taxes and is likely to reduce the ability of the underlying borrowers to meet their debt obligations,” Moody’s said.
The package announced by European policy makers and the European Central Bank’s plan to buy sovereign debt “have removed the risk of sponsors facing an immediate liquidity crisis,” Moody’s said.
The health of banks is important to the asset-backed securities because they “act in various roles in the transactions, including servicer, cash managers and swap counterparties,” the ratings firm said. “A servicing transfer would be extremely difficult in the context of the current crisis.”
The cuts “were prompted by Moody’s expectations of significant pool performance deterioration due to the stressed economic environment in Greece as well as increased operational risk due to the weakened financial strength of Greek banks,” the New York-based ratings company said today in a statement.
The downgraded securities, which are part of 23 transactions, included 10.7 billion euro of notes backed by residential mortgages, 3.9 billion euro of collateralized loan obligations, and an additional 7.2 billion euro of other asset- backed debt, according to the statement. The bonds appear less creditworthy considering “Greece’s austerity package and the resulting impact on the Greek economy and collateral performance,” Moody’s said.
Ratings reductions typically boost the capital needs of bondholders such as banks and insurers and force some investors to sell the debt.
Greece’s economy contracted in the first quarter as the government cut spending and raised taxes in a bid to trim the European Union’s second-biggest budget gap, the Athens-based Hellenic Statistical Authority said today.
Prime Minister George Papandreou, amid soaring borrowing costs, this month promised further wage cuts and tax increases on alcohol, fuel and tobacco in return for emergency loans from the International Monetary Fund and the European Union to stave off default.
Rescue Plan
Under a support package announced this week for troubled European countries, the region’s governments would offer guarantees of 440 billion euros to a special fund, which would then sell debt and use that cash to buy the bonds of nations in need. Another 60 billion euros will come from the EU’s budget and as much as 250 billion euros from the IMF. As part of that broader plan, Spain and Portugal also pledged deeper budget cuts to be outlined this month.
“The Eurozone support measures together with the austerity program will cause the transfer of wealth and income from the household and private sectors to the government sector via the assessment and collection of taxes and is likely to reduce the ability of the underlying borrowers to meet their debt obligations,” Moody’s said.
The package announced by European policy makers and the European Central Bank’s plan to buy sovereign debt “have removed the risk of sponsors facing an immediate liquidity crisis,” Moody’s said.
The health of banks is important to the asset-backed securities because they “act in various roles in the transactions, including servicer, cash managers and swap counterparties,” the ratings firm said. “A servicing transfer would be extremely difficult in the context of the current crisis.”
Код для вставки в блог
12 мая 2010, 18:53
Sand3R
alev1
zorro
zorro