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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McMolotov's picture

Egan-Jones keeps its pimp hand strong.

General Decline's picture

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

12ToothAssassin's picture

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

Say What Again's picture

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

camaro68ss's picture

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

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.

kliguy38's picture

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

NotApplicable's picture

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

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.

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?

azzhatter's picture

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

Son of Loki's picture

Bunch of Party Poopers over at EJ's.

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.

Say What Again's picture

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

Do While (1=1)

      BUY, BUY, BUY;

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;

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);

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.

NotApplicable's picture

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

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.

Boondocker's picture

Make that invaded and i am with you

Doubleguns's picture

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

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.

q99x2's picture

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

persu's picture

Rating is an opinion. How can you prosecute?

That is insane.

ziggy59's picture

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

ParkAveFlasher's picture

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

LibertarianX's picture

Weapons of Mathdestruction !!

Abraxas's picture

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

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.

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.

Euro Monster's picture

Ahhhh the almighty Egan-Jones...

Lost Wages's picture

My rating: The UK is fucked up and bullshit.

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.

SheepDog-One's picture

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

jayman21's picture

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

kliguy38's picture

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

ParkAveFlasher's picture

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

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.

Tsar Pointless's picture

S&P 1900 here we come!

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')

Yen Cross's picture

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

ziggy59's picture

Cixelsyd Algos probably read this and see it as a positive

GolfHatesMe's picture

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

rlouis's picture

Bravo! <standing ovation>

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?