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Egan-Jones Downgrades UK From AA- To A+

Tyler Durden's picture





 

Thought you could shut up Egan-Jones? Sure, you could... as a NRSRO: the same worthless designation that is carried by Moodys and S&P. However, that does not prevent them to act, and provide their ratings opinion, as a non-NRSRO. Which is exactly in what capacity the infamous firm, which was targeted by the SEC for daring to downgrade the US (the same reason S&P was sued by the DOJ later), just downgraded the UK from AA- to A+.

DOWNGRADING United Kingdom FROM AA- to A+ (S&P: AAA)

 

THIS IS A NON-NRSRO RATING.  

 

Synopsis: Re. the balance of payments, imports have exceeded exports by an average of 500B pounds annually over the past several years. The major problems for the UK is that Europe's banking crisis does not appear to be abating as evidenced by the problems of the Cypriot banks. On the fiscal side, the deficit to GDP has declined over the past three years from 11.5% to 8.3%, which is a respectable decline, but is still substantial; the bulk of the deficit reduction was the result of increased taxes. The over-riding concern is whether the country will be able to continue to cut its deficit in the face of weaker economic conditions and a possible deterioration in the country's financial sector. Unfortunately, we expect that the UK's debt/GDP will rise and the country will remain pressed (we are waiting for addl 2012 data). We are downgrading.

Full report here.

 


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Wed, 03/27/2013 - 15:37 | Link to Comment McMolotov
McMolotov's picture

Egan-Jones keeps its pimp hand strong.

Wed, 03/27/2013 - 15:42 | Link to Comment General Decline
General Decline's picture

A+?  That sounds great!  It like Trojan making the smallest condom available an XXL.

Wed, 03/27/2013 - 15:46 | Link to Comment Say What Again
Say What Again's picture

Super-BULLISH!!!

Wed, 03/27/2013 - 15:46 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

I didnt think it was possible to like a ratings agency but I do.

Wed, 03/27/2013 - 15:48 | Link to Comment Say What Again
Say What Again's picture

and of course there is less than 15 minutes to go in the regular session

Wed, 03/27/2013 - 15:55 | Link to Comment camaro68ss
camaro68ss's picture

Just break some windows, should help them get back to AAA

Wed, 03/27/2013 - 16:30 | Link to Comment Frozen IcQb
Frozen IcQb's picture

It's all part of the currency devaluation plan.

Don't be fooled. What you are likely to see is a round-robin of strategically coordinated downgrades going forward.

Wed, 03/27/2013 - 17:51 | Link to Comment machineh
machineh's picture

A+nd it's gone ...

Wed, 03/27/2013 - 15:47 | Link to Comment kliguy38
kliguy38's picture

No SHIT....maybe make them C+ and I'll pay attention.....other wise they can STFU

Wed, 03/27/2013 - 15:52 | Link to Comment NotApplicable
NotApplicable's picture

"A+? That's a big fuckin' deal!"

Wed, 03/27/2013 - 15:55 | Link to Comment RafterManFMJ
RafterManFMJ's picture

Never forget these guys are grading countries on the curve; polish these fiat turds all you want, and they will never glitter.

Wed, 03/27/2013 - 16:51 | Link to Comment max2205
max2205's picture

A piece of shit country in the middle of a depression and they give them a A+?!   

 

Is C+ when thcannibalisml starts?

Wed, 03/27/2013 - 15:49 | Link to Comment azzhatter
azzhatter's picture

Should be DD like all the Goldman female hookers. The male hookers are not rated

Wed, 03/27/2013 - 15:50 | Link to Comment Son of Loki
Son of Loki's picture

Bunch of Party Poopers over at EJ's.

Wed, 03/27/2013 - 15:37 | Link to Comment Divided States ...
Divided States of America's picture

Tell Egan to put these headlines out after 4pm because every friggin headline released during market hours only spikes the markets higher, whether it is good or bad.

Wed, 03/27/2013 - 15:50 | Link to Comment Say What Again
Say What Again's picture

If (TimeOfDay(News.object) < 1600) then

Do While (1=1)

      BUY, BUY, BUY;

Wed, 03/27/2013 - 15:57 | Link to Comment WTF_247
WTF_247's picture

You forgot the correlary code:

If(TimeOfDay(assistant.Action) < 1600 and Action(assistant.Action) = "SELL" then

Do While (1=1)

KickTheirAss;

FireTheirAss;

BUY;

Wed, 03/27/2013 - 16:05 | Link to Comment Say What Again
Say What Again's picture

Say WTF Again,

You need to use brackets for multi-stepped conditional expressions.

If(TimeOfDay(assistant.Action) < 1600 and Action(assistant.Action) = "SELL" then

Do While (1=1)

Begin

   KickTheirAss;

   FireTheirAss;

   BUY;

End (of the world);

Wed, 03/27/2013 - 23:02 | Link to Comment stacking12321
stacking12321's picture

NERDS!!!!!!!!!!!!!

Wed, 03/27/2013 - 15:38 | Link to Comment fonzannoon
fonzannoon's picture

The last I saw of Sean Egan he was flailing and desperately explaining the many circumstances which could cause them to upgrade the US rating.

Wed, 03/27/2013 - 15:53 | Link to Comment NotApplicable
NotApplicable's picture

Did any of them NOT involve violence? (well, except for the obvious unicorn scenarios)

Wed, 03/27/2013 - 15:38 | Link to Comment W74
W74's picture

Sad that they can only do this in incriments.  Some countries need to be taken down to B+ or even C by tomorrow.  The current scheme of fudging bank ledgers, insurance risks, and ratings is what got us into this mess.  Those complicit need to be hung.

Wed, 03/27/2013 - 15:47 | Link to Comment Boondocker
Boondocker's picture

Make that invaded and i am with you

Wed, 03/27/2013 - 16:30 | Link to Comment Doubleguns
Doubleguns's picture

Will the French loan out the guillotine? It might be faster.

Wed, 03/27/2013 - 17:20 | Link to Comment Acet
Acet's picture

The French might even have a couple of those pre-loved in some museum or other that they would be willing to part with. All for a good cause.

Wed, 03/27/2013 - 15:39 | Link to Comment fuu
fuu's picture

\EJ/

Wed, 03/27/2013 - 15:40 | Link to Comment q99x2
q99x2's picture

That country is under banker occupation and therefore the rating has no basis.

Wed, 03/27/2013 - 15:40 | Link to Comment persu
persu's picture

Rating is an opinion. How can you prosecute?

That is insane.

Wed, 03/27/2013 - 15:45 | Link to Comment ziggy59
ziggy59's picture

They prosecute truthsayers, reward the criminals and minions that go along with the corruption

Wed, 03/27/2013 - 15:56 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

I believe the transgression is worded, "harmful use of math".

Thu, 03/28/2013 - 04:57 | Link to Comment LibertarianX
LibertarianX's picture

Weapons of Mathdestruction !!

Wed, 03/27/2013 - 16:05 | Link to Comment Abraxas
Abraxas's picture

The definition of truth has been drastically altered by our lords.

Wed, 03/27/2013 - 15:51 | Link to Comment NotApplicable
NotApplicable's picture

Because that's not why they're being prosecuted. "Wrong" opinions draw attention to you, and like any other nail sticking out, it attracts the hammer.

In other news, NRSRO is proven to be a warning label for criminality (as evidenced by the Wiki article on them).

A Nationally Recognized Statistical Rating Organization (NRSRO) is a credit rating agency (CRA) that issues credit ratings that the U.S. Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes.

Wed, 03/27/2013 - 15:58 | Link to Comment WTF_247
WTF_247's picture

They prosecute to put you out of business.  Sick 50 lawyers on you and run up costs so high that you think twice about doing it again.  Has nothing to do with whether the case has merit or not.

Wed, 03/27/2013 - 15:40 | Link to Comment Euro Monster
Euro Monster's picture

Ahhhh the almighty Egan-Jones...

Wed, 03/27/2013 - 15:40 | Link to Comment Lost Wages
Lost Wages's picture

My rating: The UK is fucked up and bullshit.

Wed, 03/27/2013 - 15:41 | Link to Comment Rustysilver
Rustysilver's picture

A+ is very good, at least the universities that I attended.

Now, C- would be a problem.

Why would anyone even bother to rate UK, or other countries for that matter. It's all based on fake numbers.

Wed, 03/27/2013 - 15:45 | Link to Comment SheepDog-One
SheepDog-One's picture

Oh look! Good enough for algobots to pump a green finish apparently!

Wed, 03/27/2013 - 15:45 | Link to Comment jayman21
jayman21's picture

queue up the suicides...this has to be embarrassing to the royal family.

Wed, 03/27/2013 - 15:56 | Link to Comment kliguy38
kliguy38's picture

Nahhh.....they're too busy watching pediporn

Wed, 03/27/2013 - 15:58 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Followed by a dip in the ol' McDuck bullion chamber. 

Wed, 03/27/2013 - 16:38 | Link to Comment ThirdWorldDude
ThirdWorldDude's picture

I don't think the old hag and her semi-retarded son have been granted clearance to access Waddesdon Manor's secret chambers.

Wed, 03/27/2013 - 15:45 | Link to Comment Tsar Pointless
Tsar Pointless's picture

S&P 1900 here we come!

Wed, 03/27/2013 - 15:46 | Link to Comment The Invisible Foot
The Invisible Foot's picture

Ratings should not be viewed as assurances of credit quality or exact measures of the likelihood of default (pimpin' since been pimpin' since been pimpin')

Wed, 03/27/2013 - 15:55 | Link to Comment Yen Cross
Yen Cross's picture

     And (gbp/usd) just flips everyone the bird.

Wed, 03/27/2013 - 15:49 | Link to Comment ziggy59
ziggy59's picture

Cixelsyd Algos probably read this and see it as a positive

Wed, 03/27/2013 - 15:47 | Link to Comment GolfHatesMe
GolfHatesMe's picture

Love it Sean!  Test Balloon on the Non NSRO.  Now you can keep downgrading on a daily/weekly basis

Wed, 03/27/2013 - 15:50 | Link to Comment rlouis
rlouis's picture

Bravo! <standing ovation>

Wed, 03/27/2013 - 15:59 | Link to Comment Yen Cross
Yen Cross's picture

   usd/jpy 94.50 @ 15:58 yesterday   usd/jpy 94.40 @15:58 today. Why did I even get up this morning?

Wed, 03/27/2013 - 16:00 | Link to Comment SubjectivObject
SubjectivObject's picture

"... NRSRO: the same worthless designation ..." is still profitable for them that has it.

... NRSRO: the same empty designation ... is the fundamental value.

Wed, 03/27/2013 - 16:03 | Link to Comment FieldingMellish
FieldingMellish's picture

Cyprus was AA- only a few years ago... and then the rating started to fall.

Wed, 03/27/2013 - 16:18 | Link to Comment venturen
venturen's picture

Their printer must not be as big as our printer!

Wed, 03/27/2013 - 16:18 | Link to Comment Cacete de Ouro
Cacete de Ouro's picture

I just downgraded the US to E as in Ectoplasm.
Does that mean I'll get a reach around from some FAA BBW while getting searched at JFK?

Wed, 03/27/2013 - 16:34 | Link to Comment falak pema
falak pema's picture

ITS BANKS HAVE  A 25 B £ hole and now this...

Its current account is abysmal; what are Boris and Cameron going to do?

Jump from the Shard with no parachute? 

Financial policy committee identifies £25bn capital shortfall in UK banks | Business | The Guardian

Wed, 03/27/2013 - 16:45 | Link to Comment css1971
css1971's picture

What they're going to do is obvious. They are going to print and devalue until all the holes are filled and the population can't afford to import anything.

Wed, 03/27/2013 - 17:24 | Link to Comment falak pema
falak pema's picture

what will Maggy say?

All this to obtain this? WHy did I ditch those miners and dismantle all those service and national industries?

To be betrayed by this mediocrity or was I mad from the beginning? When did it all begin, my delusion?

You can't have it both ways and your way was not my way, as we are not a nation but two classes of people face to face, unless we have a common enemy like the Argentinians (haha, good one Maggy you chose one fascist as enemy the other as ally) ; sad, but those Oligarchs are more Londoners than old east endeners. A nation divided now needs to find solidity again. 

Build up from the ground. And throw those new comers back to old colonies and hanky panky moscovy land ; humm ain't life a circle?

Its a bitch of a world. What is now done cannot be undone and past dreams give way to new means of cosmopolitanism; land of individuals living in virtuality as much as in reality.

May the Google games begin. Luckily we still have the people, fish n chips, chutney dips and a sense of humour! 

Thu, 03/28/2013 - 03:10 | Link to Comment dreadnaught
dreadnaught's picture

Street guy, irritated yelling "Maggie!"

observer wryly: "Sorry mate, those days are over..."

 

 

 

 

(from the film NAKED)

Wed, 03/27/2013 - 16:36 | Link to Comment Frank N. Beans
Frank N. Beans's picture

mr. egan jones you have a lovely daughterrrr ...

 

 

Wed, 03/27/2013 - 17:13 | Link to Comment Frank N. Beans
Frank N. Beans's picture

i know, right!?  So bad i downgraded myself.

Wed, 03/27/2013 - 16:44 | Link to Comment orangegeek
orangegeek's picture

Great scots!! 

 

Robin!!  The UK is in trouble.  Get the bat helicopters out of Cyprus and start air-dropping cash on 10 Downing.

 

Good thinking Batman!!

Wed, 03/27/2013 - 18:12 | Link to Comment TrustbutVerify
TrustbutVerify's picture

Thumbs up to Egan-Jones' independence. 

Thu, 03/28/2013 - 00:56 | Link to Comment resurger
resurger's picture

Kudos to EJ!

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