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S&P To Withdraw All US Rating On May 24, Convert Everything To "Unsolicited"

Tyler Durden's picture





 

A week after S&P announced it was converting its European ratings to unsolicited as was reported previously, the rating agency now proceeds to do the same to the world's most insolvent banana republic: "Standard & Poor's Ratings Services today said it converted its
issuer and issue credit ratings on the U.S.  federal government
(AAA/Stable/A-1+) to "unsolicited." Unsolicited as in nobody wants it. In other words, following Europe, the US will now lock out S&P in providing the agency with information. "We are converting our issuer credit ratings on the U.S. government to
"unsolicited," as we do not have a rating agreement with the sovereign.
Standard & Poor's will nonetheless continue to rate the U.S.
government and classify the ratings as unsolicited, as we believe that
we have access to sufficient public information of reliable quality to
support our analysis and ongoing surveillance, and because we believe
there is significant market interest in the U.S. government rating." It is a good thing then that by now everyone knows just how relevant S&P's ongoing AAA/Stable rating on the US is.

From S&P

    * Standard & Poor's is converting its issuer and issue ratings on the U.S. government to "unsolicited."
    * On May 24, 2011, we will withdraw all of our issue ratings on the U.S. government.
    * The U.S. government unsolicited issuer credit rating will remain outstanding.
    * This conversion follows previously announced conversions of Standard & Poor's issuer and issue credit ratings on seven sovereign issuers in Europe.
    * New EU regulations require non-EU ratings, where relevant, to be labeled as unsolicited, in order for them to be considered endorsable into the EU for regulatory purposes.

NEW YORK (Standard & Poor's) Feb. 24, 2011--Standard & Poor's Ratings Services today said it converted its issuer and issue credit ratings on the U.S.  federal government (AAA/Stable/A-1+) to "unsolicited."

This conversion follows previously announced conversions of the ratings on seven sovereigns in Europe. These actions, in turn, follow new EU regulations on credit ratings (Article 10(5) of EU Regulation 1060/2009), which address matters relating to the disclosure and presentation of credit ratings, requiring, among other things, that unsolicited credit ratings be identified as such.

We are converting our issuer credit ratings on the U.S. government to "unsolicited," as we do not have a rating agreement with the sovereign. Standard & Poor's will nonetheless continue to rate the U.S. government and classify the ratings as unsolicited, as we believe that we have access to sufficient public information of reliable quality to support our analysis and ongoing surveillance, and because we believe there is significant market interest in the U.S. government rating.

Standard & Poor's has also converted its U.S. government issue ratings to "unsolicited" and intends to withdraw these ratings on May 24, 2011.

This decision does not change Standard & Poor's view of the creditworthiness of the U.S. government. Our AAA/Stable/A-1+ ratings on the U.S. government remain unchanged.

Standard & Poor's unsolicited sovereign ratings may be based solely on publicly available information and may involve the participation of government officials. Standard & Poor's has used information from sources believed to be reliable based on standards established in our Credit Ratings Information and Data Policy, but does not guarantee the accuracy, adequacy, or completeness of any information used.

 


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Thu, 02/24/2011 - 13:11 | Link to Comment the mad hatter
the mad hatter's picture

I remember on my report cards U stood for unsatisfactory, one step above F.

Anyways, this is what seems to be everyone is missing.

The global economy is being held hostage by fractional-reserve bankers. What once was a simple job storing money for people has turned into the most lucrative, corrupt industry humanity has ever seen.

They hold the economy hostage and have bought out the politicians. Inflation causes us to fight amongst ourselves while they take the gold and run.

Evil bloodsucking leeches they are. They need to pay for their bad investments, not us taxpayers.

We need banks that do not make loans and simply store money for a fee. Those banks can't go bankrupt and the fractional reserve bankers can therefore, not threaten us with a crash of the global economy and get all the money they want.

 

Thu, 02/24/2011 - 12:45 | Link to Comment buzzsaw99
buzzsaw99's picture

Hey S&P, don't let the door hit you in the ass...

Thu, 02/24/2011 - 13:28 | Link to Comment AccreditedEYE
AccreditedEYE's picture

Bank's Tier 1 Capital is going to get nuked. Question is when. FAZ bitchez... margined to buy Physical. LOL

Thu, 02/24/2011 - 12:48 | Link to Comment props2009
props2009's picture

In line with Moody then.

http://dawnwires.com/investment-news/moody-says-us-could-miss-interest-payment/

and

http://ransquawk.com/live

both reporting Moody. 

 

Is the US downfall imminent then? far sooner than anyone thought. I mean imagine last year we were singing songs to a EU break up and here we are thinking of theunthinkable....

Thu, 02/24/2011 - 12:48 | Link to Comment Ragnarok
Ragnarok's picture

Why not just close up shop? What's the fucking point?  A ratings agency that doesn't rate anything? Sounds like a gov't make-work project.

Thu, 02/24/2011 - 12:53 | Link to Comment Divided States ...
Divided States of America's picture

Exactly, there is no need for them to be around.

Thu, 02/24/2011 - 12:54 | Link to Comment karzai_luver
karzai_luver's picture

AAA++++++++

Thu, 02/24/2011 - 13:00 | Link to Comment DOT
DOT's picture

No point indeed. The first casualty of war in practice has been the de-basement of language.

Ratings Agency that does not rate,  contract that does not bind, obligation that does not oblige, Accounting that does not make account....... , public service that does not serve.

Thu, 02/24/2011 - 13:16 | Link to Comment blindfaith
blindfaith's picture

S&P, Moodys, all of them...were for those who were to lazy, or playing golf, to do their homework..  How can you trust someone that your are PAYING to give you a good rating.

That is like a trick telling some old 90 year old how wonderful and 'handy' he is.

Thu, 02/24/2011 - 12:50 | Link to Comment 101 years and c...
101 years and counting's picture

"as we believe that we have access to sufficient public information of reliable quality to support our analysis and ongoing surveillance"

where they getting their info?  ZH?

 

 

 

 

Thu, 02/24/2011 - 13:20 | Link to Comment blindfaith
blindfaith's picture

Porn Sites...isn't that where 1/2 the Government workers hang out now and post important information.

Thu, 02/24/2011 - 12:51 | Link to Comment umop episdn
umop episdn's picture

Nobody wants to pay them for a rating that no one believes. Maybe it is time for them to close up shop. Which means it's time to have a new, better rating agency! The ZH rating agency, where all our TBTF are labeled "Ponzi, insolvent, zero, zero, zero!"

Thu, 02/24/2011 - 12:53 | Link to Comment Ragnarok
Ragnarok's picture

Reggie's all over it.

Thu, 02/24/2011 - 13:00 | Link to Comment HoofHearted
HoofHearted's picture

"ZH ratings are unsolicited and mostly undesired. That's because we here at ZH ratings don't take any shit. We don't believe in bribes. And we won't lie for anyone, whether it's a company we don't believe in or a sovereign we don't trust."

Thu, 02/24/2011 - 12:52 | Link to Comment Duffminster
Duffminster's picture

When sovereign nations exit their agreements with the largest rating agencies for their debt it is pretty clear that the quality of the debt is likely degrading substantially in my opinion.  What have they got to hide? 

This should really help demand in the treasury markets, eh?  QE N here we come.

 

 

Duffminster

Thu, 02/24/2011 - 12:53 | Link to Comment Miss anthrope
Miss anthrope's picture

Well, the U.S. in bankrupt so they CAN'T put that down.  I applaud their quasi-integrity, really. 

Thu, 02/24/2011 - 12:52 | Link to Comment tellsometruth
tellsometruth's picture

wow...I mean we all know how great the ratings were before... but jeezus

Thu, 02/24/2011 - 12:52 | Link to Comment Ayn Rand
Ayn Rand's picture

Hate to see what would happen if we didn't have the most transparent administration in history.

Where is Nixon now that we need him?

Thu, 02/24/2011 - 12:53 | Link to Comment tellsometruth
tellsometruth's picture

haha

Thu, 02/24/2011 - 12:56 | Link to Comment karzai_luver
karzai_luver's picture

The Black Tricky Dick .....

 

Nixon The Black.

 

choices choices..............

Thu, 02/24/2011 - 13:02 | Link to Comment DOT
DOT's picture

Ah, the good old days. What flavor will default come in this time ?

Thu, 02/24/2011 - 13:02 | Link to Comment DOT
DOT's picture

DP

Thu, 02/24/2011 - 12:55 | Link to Comment suteibu
suteibu's picture

Now S&P can do what the CIA does to get their information...read Al Jazeera.

Thu, 02/24/2011 - 12:54 | Link to Comment Cursive
Cursive's picture

Can anyone imagine this headline only 4 short years ago? The next wave is upon us and I know it is going to be painful, just confused about the details.

Thu, 02/24/2011 - 13:20 | Link to Comment Zero Govt
Zero Govt's picture

i can't imagine this climb down even now.. thought the crones, sorry CRA's, would cling to the corrupt system putting a shiny gloss on shit until the very bitter end!!!

Thu, 02/24/2011 - 12:55 | Link to Comment curbyourrisk
curbyourrisk's picture

Arthur Anderson thier asses....NOW!

Thu, 02/24/2011 - 16:23 | Link to Comment gunsmoke011
gunsmoke011's picture

I was thinking the same thing. I wonder if by now offering "Unsolicited" ratings - this releases them from any legal liability in the event we all wake up on March 15 to hear the U.S. declare itself insolvent.

Thu, 02/24/2011 - 12:56 | Link to Comment harrypotter
harrypotter's picture

I think they received the reliable information only from wikileaks, now that is not possible, so they want to dissolve......

Thu, 02/24/2011 - 12:57 | Link to Comment Misean
Misean's picture

Ratings?!? We don't need no stinking ratings!

Thu, 02/24/2011 - 13:01 | Link to Comment harrypotter
harrypotter's picture

now they have been rated as "XXX-"

Thu, 02/24/2011 - 13:01 | Link to Comment camaro68ss
camaro68ss's picture

WOW, i did not think this would happen to after the dow was under 1,000

Thu, 02/24/2011 - 13:03 | Link to Comment trillion_dollar...
trillion_dollar_deficit's picture

Is this not as cataclysmic of an event I am interpreting it to be? I mean holy fucking shit!

Thu, 02/24/2011 - 13:11 | Link to Comment No One
No One's picture

it may have been at some point in the past, when the rating agencies had credibilty. Now, not so much.

Thu, 02/24/2011 - 13:16 | Link to Comment WaterWings
WaterWings's picture

Hmm. Terrorist caught >>> special announcement!

Thu, 02/24/2011 - 13:06 | Link to Comment max2205
max2205's picture

I always mark it as TOO FUCKING LATE and WHO THE FUCK cares what and when they publish ratings

Thu, 02/24/2011 - 13:08 | Link to Comment Quinvarius
Quinvarius's picture

What is so important about May 24?

Thu, 02/24/2011 - 13:18 | Link to Comment Cpl Hicks
Cpl Hicks's picture

Check the Mayan calendar, and then...be very afraid.

Thu, 02/24/2011 - 13:20 | Link to Comment Cpl Hicks
Cpl Hicks's picture

Oh, and don't forget to stock up on gold and silver and guns and ammo and bulk foodstuffs and batteries and cache plenty of fuel up in the mountains near your hidey-hole. Did I forget anything?

Thu, 02/24/2011 - 13:13 | Link to Comment Zero Govt
Zero Govt's picture

....the world's most insolvent banana republic...

looks like you're beating S&P in ratings accuracy with that line TD .....Meredith has competition!

Thu, 02/24/2011 - 13:13 | Link to Comment ebworthen
ebworthen's picture

 

Standard and Poor's is going to say "unsolicited" until someone at the FED gives them a regular kickback for a AAA+ rating - probably some non-tungsten gold bars and some 3% down/3.5% APR loans on New York real estate.

 

Thu, 02/24/2011 - 13:26 | Link to Comment blindfaith
blindfaith's picture

OUCH!!!!

 

That is it, no more insider information for you. No soup either.

Thu, 02/24/2011 - 13:16 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

not sure what everyone is talking about, S and P downgraded Libya 2 days ago.

 

i thought things were cool over there until i got the downgrade from S and P

Thu, 02/24/2011 - 13:18 | Link to Comment topcallingtroll
topcallingtroll's picture

S and P and the other rating agency monopolists have long outlived their usefulness.

Thu, 02/24/2011 - 13:22 | Link to Comment Cpl Hicks
Cpl Hicks's picture

As have many other entities currently operating in the power centers of society.

Thu, 02/24/2011 - 13:37 | Link to Comment AntiMort
AntiMort's picture

Maybe they'll grow some balls now and put out some real ratings.

Alternately, they can continue along the same path and fade into the sunset.

Thu, 02/24/2011 - 13:43 | Link to Comment gwar5
gwar5's picture

They may as well write on the wall "Yes, we have no bananas" in crayon.

Though I admit it's more subtle than yelling fire! in a crowded theater. 

 

Thu, 02/24/2011 - 13:55 | Link to Comment themosmitsos
themosmitsos's picture

This is ......... this BIGGEST event since .... I remember reading Bush changed the rules as to what portion of banks' capital could be invested/traded in .... ???? 2004? 05?

 

US DOWNgrades are IMMINENT imo

Thu, 02/24/2011 - 14:07 | Link to Comment Rogerwilco
Rogerwilco's picture

Unsolicited? Fo shizzle ma nizzle.

Bad Boyz move in silence, or violence.

Thu, 02/24/2011 - 14:07 | Link to Comment gwar5
gwar5's picture

USA declares: "Yes, we have no bananas!"  The only thing worse than a Banana Republic is a Banana Republic with no bananas.

To get us in the mood for our upcoming new lifestyle, here's some happy songs to go along with the happy talk from TPTB. First one proves that even Scandanavians get it and the other is your neighbors in their new jobs. 

YouTube - Banana Airlines - Yes we have no bananas

YouTube - Yes We Have No Bananas

 

Thu, 02/24/2011 - 15:20 | Link to Comment Ckierst1
Ckierst1's picture

How much of this corruption is owing to the government sanctioned corporate status?  Martin Weiss would be much better.

Thu, 02/24/2011 - 19:23 | Link to Comment Buck Johnson
Buck Johnson's picture

We are screwed, big time.

Thu, 02/24/2011 - 19:47 | Link to Comment zebra
zebra's picture

so this is like:

"if you can't say something nice, then don't say anything."

 

in this case

"if you can't rate me as AAA, then STFU."

Fri, 02/25/2011 - 09:48 | Link to Comment JimboJammer
JimboJammer's picture

This  is  Huge  news...  but  is  it  on  TV..?

Hell  No..........  China  will  Love  this...

Gold  and  Silver  will  go  to  the  Moon... !

Sat, 02/26/2011 - 07:47 | Link to Comment JimboJammer
JimboJammer's picture

CNBC / FOX  / CNN  TV  did  not  say  One  Word  about  this.  It  would  be  the  same as  shouting  " FIRE "  in  a  jam  packed  movie  theater..... am  I  right  or  what...... !

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