S&P Downgrades Italy From BBB+ From BBB; Full "Puffery" Statement

Tyler Durden's picture


Just more meangingless drivel form a clueless, paid for rating agency (which recently disclosed it would plead "puffery" in its defense against the US lawsuit) now that the ECB is intent on actually lowering the EURUSD, because unlike last year, there is no (immediate) fear of redenomination risk as a result of a sliding EURUSD. Thank you Japanese carry trade.

As a reminder, "S&P said in its request to dismiss the case that the government can’t base its fraud claims on S&P’s assertions that its ratings were independent, objective and free of conflicts of interest because U.S. courts have found that such vague and generalized statements are the kind of “puffery” that a reasonable investor wouldn’t rely on."

So, if anyone cares what today's puffery is all about, here is the full statement.

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 07/09/2013 - 14:02 | 3734617 The Juggernaut
The Juggernaut's picture

Because of the decline of Bunga Bunga parties we see a disappointing decline in activity to repay debt.  These parties accounted for nearly 30% of the country's GDP.

Tue, 07/09/2013 - 14:00 | 3734625 Dareconomics
Dareconomics's picture

It's puffery because the country stil carries an investment grade rating.



Tue, 07/09/2013 - 14:02 | 3734632 azzhatter
azzhatter's picture

You mean S&P is still in business?

Tue, 07/09/2013 - 14:46 | 3734815 McMolotov
McMolotov's picture

S&P = Shit & Piss

Tue, 07/09/2013 - 14:05 | 3734635 JustObserving
JustObserving's picture

Moody's downgraded Hong Kong the day after it allowed Snowden to leave.  Moody's downgraded Russia's 3 top lenders yesterday.  The rating agencies are instruments of US foreign policy.  What did Italy do to displease its masters?

Moody’s cut by a notch the ratings of Russia’s state lending giants – Sberbank and VTB – with Russian Agricultural Bank seeing a two notch downgrade. The agency said the Russian government was less prepared to back the lenders than it was in 2007 - 08.

Moody’s rating service downgraded the long-term senior debt and deposit ratings of Russia’s key state lender Sberbank  (to Baa1 from A3), Bank VTB and VTB24 (to Baa2 from Baa1) and Russian Agricultural Bank (to Baa3 from Baa1). The outlook for these ratings is stable.


Tue, 07/09/2013 - 14:38 | 3734784 ParkAveFlasher
ParkAveFlasher's picture
Tue, 07/09/2013 - 14:05 | 3734640 The Thunder Child
The Thunder Child's picture

Yes because we all believe and follow a ratings firm on Wall Streets take that rated MBS toxic crap as AAA......you should post Egan-Jones ratings side by side Tyler, which I am actually curious to know what it currently is for Italy.

Wed, 07/10/2013 - 07:28 | 3736839 HoaX
HoaX's picture

Didn´t Egan Jones get prohibited from issuing any for like 18months after they had the audacity to downgrade the US?



It is refreshing to see that the SEC has taken a much needed break from its daily escapades into midgetporn.xxx and is focusing on what is truly important, such as barring outspoken rating agency Egan-Jones from rating the US and other governments.


Tue, 07/09/2013 - 14:06 | 3734643 wallstreetapost...
wallstreetaposteriori's picture

I guess this means that the European periphery debt and indexes are set to rally tomorrow.  Why not.... it's not like economic fundementals matter anymore.  

Tue, 07/09/2013 - 14:06 | 3734645 vote_libertaria...
vote_libertarian_party's picture

BBB for 'buy buy buy'?

Tue, 07/09/2013 - 14:46 | 3734816 CH1
CH1's picture

BBB for 'buy buy buy'?

Bunga, Bunga, Bunga!

Tue, 07/09/2013 - 14:07 | 3734647 buzzsaw99
buzzsaw99's picture

your honor, clearly we have very little credibility, and, frankly, anyone who would listen to us is an idiot.

Tue, 07/09/2013 - 14:26 | 3734717 JustObserving
JustObserving's picture

They could have said that we are lying, thieving bastards who are always up for sale to the highest bidder but they are allergic to the truth.

Tue, 07/09/2013 - 14:08 | 3734651 sudzee
sudzee's picture

OT but enlightening from former FEDHEAD

"The word 'money' is never said in our office [and] probably not by the staff at the Fed," he added. "Money doesn't appear in any modern macro model. We have got to get over that, OK? We're beyond that now."

Tue, 07/09/2013 - 14:07 | 3734652 andrebalza
andrebalza's picture

"real growth averaging minus 0.04%."
That looks puffery at its best, whatever that means

Tue, 07/09/2013 - 14:07 | 3734653 Clowns on Acid
Clowns on Acid's picture

What difference does it make ?

Lower Euro benefits Germany, Merkel takes credit for increased GDP. Bernanke prints to keep S+P rising... where is the problem. This is great policy by the desperate Keynesians.

Bernanke is a genius.... it is us peons that just don't get it.

Tue, 07/09/2013 - 14:09 | 3734654 Dr. Engali
Dr. Engali's picture

So front run the ECB and buy Italian bonds...got it.

Tue, 07/09/2013 - 14:42 | 3734805 PontifexMaximus
PontifexMaximus's picture

Seems you have a direct line to frankfurtsupermario...NSA'd by angela .....

Tue, 07/09/2013 - 14:11 | 3734666 Devotional
Devotional's picture

Why don't they downgrade the USSA? Oh wait ... they are on Washington's payroll.

Tue, 07/09/2013 - 14:22 | 3734685 JustObserving
JustObserving's picture

The last time S&P downgraded USA, its CEO, Deven Sharma, was quickly fired.  That lesson has not been lost on other CEOs.  The USA will not be downgraded again.  Welcome to the land of the free, home of the brave.  

Standard & Poor's said its president is stepping down, capping two weeks of controversy following the rating agency's downgrade of U.S. government debt on Aug. 5 that sparked a row with the Treasury.


S&P's parent McGraw-Hill Companies Inc, said on Tuesday Deven Sharma, who has served as S&P president since 2007, will be succeeded on Sept. 12 by Citibank Chief Operating Officer Douglas Peterson.


Tue, 07/09/2013 - 15:11 | 3734893 Lore
Lore's picture

Re: "The USA will not be downgraded again." 

Hence USD "strengthyness." Pardon me if I head for the exit.

Tue, 07/09/2013 - 14:15 | 3734678 Surging Chaos
Surging Chaos's picture

Just downgrade to junk already!

Tue, 07/09/2013 - 14:22 | 3734696 thismarketisrigged
thismarketisrigged's picture

downgrade the world, the global economy is fucking shit.


yet, looking at the ponzi scheme u.s market, u would think this is a golden age.

Tue, 07/09/2013 - 14:22 | 3734703 involuntarilybirthed
involuntarilybirthed's picture

The only rating that matters is the rating (+/-) you put on your own investment strategies.  The other stuff is data of some sort, usually late to an alert investor. 

Tue, 07/09/2013 - 14:28 | 3734732 JJ McApe
JJ McApe's picture

same as schettino... the titanic is sinking, slowly but surely

Tue, 07/09/2013 - 14:39 | 3734789 involuntarilybirthed
involuntarilybirthed's picture

Puffery is everywhere, even in the courts. 

Tue, 07/09/2013 - 14:40 | 3734792 PontifexMaximus
PontifexMaximus's picture

Solo BBB???

Tue, 07/09/2013 - 14:42 | 3734795 Bam_Man
Bam_Man's picture

"a decade of real growth averaging minus 0.404%

How can they refer to that as "growth"?

Tue, 07/09/2013 - 14:48 | 3734826 CH1
CH1's picture

"a decade of real growth averaging minus 0.404%

I love it that they're using three decimal places! At ten years out!!

Thems must be some damn smart boys!

Tue, 07/09/2013 - 15:34 | 3734963 WonderDawg
WonderDawg's picture

Negative growth. Kind of like a flaccid hard-on.

Tue, 07/09/2013 - 16:20 | 3735127 WallowaMountainMan
WallowaMountainMan's picture

my first wife was BBB+.

Tue, 07/09/2013 - 17:32 | 3735363 pashley1411
pashley1411's picture

When a government seizes all the means of production, we call it Socialism.    But when a government seeks to seize all the means of communication, including the press, acceptable religious worship, financial news, and rating agencies, we don't have a proper term for it.   

Tue, 07/09/2013 - 18:59 | 3735557 Big Brother
Big Brother's picture

On the bright side Latvia was upgraded from BBB to BBB+ by Fitch for... oh... joining the euro.


It's like jumping from a life-raft back onto the titanic.

My advice for Latvians, all 2 million of them... don't through those Lats away just yet.

Wed, 07/10/2013 - 07:10 | 3736813 Debugas
Debugas's picture

latvians are not fools , they change their paper at www.tavex.lv

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