Moody's may raise ratings on change in country credit method
Moody's Investors Service may raise ratings on debt of 29 government-related financial institutions because of a change in how it rates governments' ability to assist these entities. Moody's will use so-called local currency deposit ceiling ratings it created earlier this month instead of countries' government bond ratings to judge the risk that a government would be unable to rescue the institutions, the credit rating company said in a statement yesterday. Governments are likely to support troubled financial institutions, including those that aren't banks, even if the government defaults on its own debt, David Fanger, Moody's New York-based chief credit officer for financial institutions, said in the statement. „Governments are motivated to do this because a failure by a major government-owned (or chartered) financial institution could negatively affect investor confidence and spill over into the commercial banking system,” Fanger said. Some east Eutopean institutions that may receive ratings increases are: Croatian Bank for Reconstruction and Development, Czech Export Bank, a.s., Hungarian Development Bank Ltd., FHB Mortgage Bank Co. Plc. (Hungary), Cassa Depositi e Prestiti S.p.A. (Italy), Eximbanka SR (Slovakia). (Bloomberg)
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.