This page has been archived and commenting is disabled.

Dagong Puts Italy Ratings On Downgrade Review

Tyler Durden's picture





 

The farce is now complete, as the Chinese rating agency Dagong, which was the first one to downgrade the US, reminds the world it is there to lend its weight in destabilizing the ponzi house of cards. From Dow Jones: "Chinese ratings agency Dagong Global Credit Rating Co. said Monday it is putting Italy's sovereign debt on negative watch for a possible downgrade. The Italian government's debt accounts for 119% of gross domestic product, with most of the debt coming due in the next five years, Dagong said in a statement. Dagong has often issued controversial ratings. In November last year, it cut its rating on the U.S. to A+ from AA, with a negative outlook. It ranks the U.S. as a riskier borrower than China. Italian debt is in focus at the moment, as spreads between 10-year Italian and German bond yields reached a record 2.47 percentage points on Friday. Dagong said in its statement that it will downgrade Italian debt if the government's debt-financing costs continue to rise. "(Italy's) financing needs are huge each year, and the debt burden of the government will be seriously constrained by financing costs," Dagong said. Dagong gave Italy an A- rating with a negative outlook in June 2010." Who could have possibly thought that Italy's surging issuance load over the short term could be an issue. Oh wait... And yes, the irony that China, which as of this morning has telegraphed it is just as helpless in controlling the global liquidity implosion as everyone else, is downgrading another insolvent country is not lost on us. But yes, earlier Dagong did announce that that Moody's report on local government debt is "unfounded" and "vicious." Perhaps the most ironic thing is that the rating agencies got us here... And they will be those who get us out (courtesy of the escalating downgrades to the global reset ushering bottom).

From Friday, Italy's upcoming ridiculous issuance calendar:

h/t Pino

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 07/11/2011 - 07:43 | Link to Comment Yen Cross
Yen Cross's picture

 Who is underwriting that review? Moodys of Milan?

Mon, 07/11/2011 - 07:59 | Link to Comment TruthInSunshine
Mon, 07/11/2011 - 08:01 | Link to Comment Yen Cross
Yen Cross's picture

 Silent Clap... +~   AKA golf clap...

Mon, 07/11/2011 - 08:02 | Link to Comment qussl3
qussl3's picture

Liar liar pants on fire.

Mon, 07/11/2011 - 08:08 | Link to Comment augie
augie's picture

@sunshine,

You worry too much. They have their top men working on it... Top, Men. 

http://www.youtube.com/watch?v=q6-rQ6Jay6w&feature=BFa&list=HL1310386008...

Mon, 07/11/2011 - 09:22 | Link to Comment Thorlyx
Thorlyx's picture
Mon, 07/11/2011 - 09:39 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Tue, 07/12/2011 - 21:45 | Link to Comment MGHJFHD
MGHJFHD's picture

.From all the blogs I’ve read lately, this one seems to be the most impressive - it gave me something to think about.

------------------------------------------------------

Whether you want sumptuous layers or a simple sheath, the dresses to impress awaits you here. wedding lingerie|bridal corsets|bridal jewelry|wedding jewelry|bridal jewelry sets Your friends are bound to tell you that the dress is exactly the perfect one for you, because it speaks for your good taste.

Mon, 07/11/2011 - 07:45 | Link to Comment Negro Primero
Negro Primero's picture

mamma mia!!!

Mon, 07/11/2011 - 07:46 | Link to Comment NoRestForTheWicked
NoRestForTheWicked's picture

The calendar has a little red x in a sea of white (not uploaded yet).  Maybe symbolic?

Mon, 07/11/2011 - 09:04 | Link to Comment Sudden Debt
Sudden Debt's picture

Maybe X points out the place where they hid the gold?

somewhere in the sea?

 

Mon, 07/11/2011 - 07:46 | Link to Comment qussl3
qussl3's picture

Chinabot's got a virus?

WTF lol.

Mon, 07/11/2011 - 07:53 | Link to Comment Caviar Emptor
Caviar Emptor's picture

2008: Globally coordinated bailouts 

2011: Globally coordinated downgrades

Ponzi off! 

Mon, 07/11/2011 - 09:07 | Link to Comment Sudden Debt
Sudden Debt's picture

Beautifull he?

 

First the countries bailout the banks...

Then the Banks bailout the countries...

 

makes sense... in a way...

Mon, 07/11/2011 - 07:53 | Link to Comment Mountainview
Mountainview's picture

Datong is the only credible rating agency as they represent the worldwide biggest buyer of bonds. S&P, Moody's and Fitch represent the biggest seller of debt and smell very often politicaly perfumed.

Mon, 07/11/2011 - 07:54 | Link to Comment the not so migh...
the not so mighty maximiza's picture

It is about time Italy joined the party. 

Mon, 07/11/2011 - 09:04 | Link to Comment Sudden Debt
Sudden Debt's picture

Italians...

When they say "we're finished" that means that they are planning to start.

When they say "no problem my friend"... you should worry... and get out... FAST!

 

 

Wed, 07/13/2011 - 06:02 | Link to Comment luigi
luigi's picture

"No problem, we are finished"...

Mon, 07/11/2011 - 07:54 | Link to Comment malikai
malikai's picture

WTF?! Isn't this against their self-interest? I mean, after all that's been "invested" in Greece.. I'm terribly confused here.

Mon, 07/11/2011 - 07:56 | Link to Comment Miss Expectations
Miss Expectations's picture

The farce is now complete...

Not quite.  This is merely another disturbance in the farce.

Mon, 07/11/2011 - 08:01 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The farce is strong in Schaeuble.

Mon, 07/11/2011 - 08:01 | Link to Comment Caviar Emptor
Caviar Emptor's picture

+1

Mon, 07/11/2011 - 08:05 | Link to Comment bigwavedave
bigwavedave's picture

so china wants to buy some cheaper italian paper... makes sense

Mon, 07/11/2011 - 08:04 | Link to Comment Poor Grogman
Poor Grogman's picture

It is not meant to be clear.

We are meant to be confused little sheep just bleating to be led out of the deep dark wood.

Unfortunatly for the PTB some people just insist on putting out another line of shorts, or buying inedible metal for entertainment,  rather than watching the idiot box.

These damn uppity sheeple.

Mon, 07/11/2011 - 08:17 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Today is a definite  Ponzi off!  day.

Gold continues to decouple from metrics that have dominated the price action in recent months: dollar up, oil down are no longer an issue. I suspect that trend will continue and pick up steam. 

That's because gold is reclaiming its top-of-the-food-chain status in the face of full-on global currency uncertainty that, yes, even reaches the dear old dollar. US sovereign debt issues are now on full display and the politics are getting thick. An imminent rise in the debt ceiling comes at a badly timed juncture that only raises the specter of global competitive devaluations. US unemployment has quashed any fears of a rate hike. And dollars may soon be spewing out of the fire hose as the new phase of the crisis unfolds

And there's also the sneaking suspicion of interbank liquidity drying up fast out there as numerous, interdependent global mega banks are falling into the shadowland of counterparty suspicion. Who will be the first domino? 

Hang on to yer gold. If you don't have any, get it. If you have extra Bennie Bux, convert them. Gold will help navigate the choppy waters of the new unfolding reality which continues to go down the slippery slope anticipated since the crisis began in 2007. 

Mon, 07/11/2011 - 08:22 | Link to Comment qussl3
qussl3's picture

I really want to agree with you but my dildo sense tells me that the moment we get a miraculous deadline debt deal announced, paper gold is gonna get ponzi whacked.

Waiting to BTFD on that tho lol.

Mon, 07/11/2011 - 08:16 | Link to Comment spanish inquisition
spanish inquisition's picture

I think the problems is there are too many people looking at and analyzing sovereign debt. I suggest that no one should be allowed to look at sovereign books. Without analysis, everyone will be happier because the debt is neither solvent or insolvent. Without having a debt distraction, we can concentrate on getting the trains to run on time. We can call it the Schrodinger Sovereign Debt Model.

Mon, 07/11/2011 - 09:08 | Link to Comment White.Star.Line
White.Star.Line's picture

Finally, a workable solution to the crisis!

It is not the shady books, excessive leverage, and skyrocketing debt ratios that are the problem.
It is the threat of AUDIT.

We need more controls to keep inquisitive minds out of the world financial system, and not rock the boat.

Speaking of rocking boats, we are just about out of lifeboat seat assignments......

Mon, 07/11/2011 - 08:21 | Link to Comment luigi
luigi's picture

Well, as little notch of hope, at least half of the due debt is in the hands of Italian banks (broken themselves, but keen not to lessen their reserves, so they probably still will buy).

Despite the fact that Italian default is long overdue (as is that of most western Countries) it is funny to see how every time there is an auction of souvereigns somewhere, a few days prior some rating agency starts the shit-fan at full power. OTOH, every time there are T-Bonds to sell, again the shit-fan blows against euro-zone to spread panic and push the Financial-Hamster-flock in the T-Bond corral. It seems to me that most traders have been reduced to a Pavlov-dog degree of drill.

Mon, 07/11/2011 - 09:45 | Link to Comment Ted K
Ted K's picture

Thank you Zhing Zhang Zhong!!  Any updates on if Greece or Iceland is going to default from comrade Wing Wang Wong??? Ching Chang Chong says careful what you say when Big Daddy Wen JiaBao is listening. IF you whispered the word "Inflation" and the starving peasants are listening outside the window it could cause "Big Daddy, everybody want to lick your ass Wen Jiaboa" major probs.

Mon, 07/11/2011 - 10:40 | Link to Comment Stuck on Zero
Stuck on Zero's picture

"Oh yeah! If you downgrade my country I'll downgrade yours."  And so the MAD doctrine takes down the nation-states.

Mon, 07/11/2011 - 10:58 | Link to Comment williambanzai7
williambanzai7's picture

Mon, 07/11/2011 - 18:12 | Link to Comment PulauHantu29
PulauHantu29's picture

Are Moody's and S&P still in business?

The Greater Sucker Theory. They were rating the worthles subprime Triple AAA right up until they went belly up....LMAO

Do NOT follow this link or you will be banned from the site!