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Russian Central Bank Bans Western Ratings Agencies
On the heels of last week's downgrades by Fitch and Moody's to just above junk status, The Central Bank of Russia (CBR) has issued a statement that it will no longer use credit ratings from Standard & Poor’s, Fitch, or Moody’s that were assigned after March 1, 2014. All credit ratings will now be at the discretion of the Board of Directors of the Bank as regulators assess whether or not the ratings made after March are accurate. Sounds like Spain, Greece, and USA's previous derision over ratings agencies proclamations is heading east.
The Central Bank of Russia will no longer use credit ratings from Standard & Poor’s, Fitch, or Moody’s that were assigned after March 1, 2014.
All credit ratings given to Russian companies and banks will now be at the discretion of the Board of Directors of the Bank, according to a press statement Monday. The regulator will assess whether or not the ratings made after March are accurate.
The decision comes after Fitch and Moody’s downgraded Russian sovereign debt to just above junk status. Standard & Poor’s will decide whether it cuts Russian debt to junk level by the end of January after cutting it last April, after Crimea rejoined Russia and the West began to levy sanctions against Moscow.
* * *
On dates of credit ratings’ use for the purpose of Bank of Russia regulations
In line with scope of authority established by Bank of Russia Ordinance No. 3453-U, dated 25 November 2014, ‘On the Specifics of Credit Ratings’ Use -to Implement Bank of Russia Regulations’, the Bank of Russia Board of Directors determined the dates when credit ratings shall be assigned to implement Bank of Russia regulations.
Under this Ordinance, should any Bank of Russia regulation contain information on credit rating assigned by Standard&Poor’s or Fitch Ratings or Moody’s Investors Service to credit institutions or other Russian legal entities, constituent territories, municipal entities, their issued securities or other financial instruments, the date when the mentioned rating is assigned (hereinafter, the rating date) may be determined by the decision of the Bank of Russia Board of Directors in the corresponding regulation.
According to Bank of Russia Board of Directors’ decision, the rating date for credit institutions and their issued financial instruments, including securities, to implement Bank of Russia regulations, shall be 1 March 2014; as for other entities, listed in the Ordinance, and their issued securities, this rating date shall be 1 December 2014.
* * *
“They’re private companies, so we assume that they’re completely independent and not subject to political pressure.
However, they do exist in an American context and are subject there to the international media’s reporting which tends to give a single narrative – a very negative narrative when it comes to reporting – particularly the Russia story,”
All sounds very similar to the responses that troubled and over-indebted western nations had when the ratings agencies dared to downgrade them.
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They're useless anyway....
Useless? They made it a lot easier for the likes of GS to pawn off a lot of "shit" MBSs to investors while GS turned around and purchased a lot of CDSs from AIG on those very same MBSs.
IR may have meant they are useless to REAL humans.
Well, they are useful to our reptillian bankster overlords.
World War 3 is coming as part of the Crisis of 2020.
2020? We could last until 2022 or 2023. I acknowledge those dates as a sort of theoretical limit. Not as a real limit. I say that you, sir, are an optimist.
we suspended marked to market in 2008 so what do ratings mean anyway? at least where banks are concerned.
Credit.. Credit Ratings
The bankers shackles around the necks of submissive countries, companies
and individuals.
More to the point, if you do not like the reality created for you by others (in this case, the US/Western banks), create your own. Arguably, your new reality will be just as, if not more, valid than the previous.
The reality created by the Chinese-Russian interests may be more attractive to a lot of other nations around the world than the current US-dominated reality.
Something to think about on a personal level as well.
But don't forget to earn enough FRNs to pay your property taxes.
Coming Soon : Islamic ratings agency to counter western hegemony
The Chinese have theirs already. Rating is a political act.
I rate Russia fair to middl'n.
A long overdue step to ban these criminal organizations. Sadly only few souvereign countries are left on the planet which can dare to that.
A few numbers showing the ridiculous fraud these three rating agencies are and how they have unmasked themselfes now, with downgrading Russia to above junk level.
Decide yourself if a country with that financial solidity should be rated above junk:
Debt to GDP: 13%.
Positive trade account.
November unemployment rate rose (like every winter) from 5.1% to 5.2%.
November retail sales rose 1.8%, after 1.6% previously.
National reserve fund raises to 4.39 bn RUB from 3.89.
Public finance October surplus raises to 1.59 bn RUB after 1.54 bn RUB previously.
Nov. trade balance surplus of 13.4 bn USD (Moody's estimation: 11 bn LOL!), after 14.2 bn USD previously.
If this is above junk level, what rating the USA and UK should have?
I think everyone looking at the numbers immediately recognizes that the rating agencies are WEAPONS of FINANCIAL WARFARE, but they cannot be trusted.
Long overdue that countries begin to ban them!
One should not forget, that it were these institutions that rated the Goldman Sachs and JPM mortage garbage AAA.
The world needs to be liberated from the Angloamerican City of London and New York financial fraudster system.
World War One was fought under the assumption that the losers would pay for the war. Otherwise would have been impossible to fight, due to the costs in ammunition (and lives, but they are not counted, in the world of finance)
World War Two was fought because of that assumption that the losers would pay for the previous Great War, and about who would tell the losers what to pay. Then it costed even more both for the victors immediately and then for the losers, for decades
but at least the Pax Britannica lived on, in the form of Pax Americana
now... World War Three... how do you even think about who could even finance such a thing? CONSIDERING THAT THE VICTORS USUALLY HAVE TO REBUILD WHATEVER THEY BROKE?
considering that nobody in real life instead of dreams and Hollywood ever wages war without a profit in mind. nobody. ever. no profit, no war
repeat after me: Iraq costed one trillion. Iraq costed one trillion. Iraq costed one trillion
there is not enough money in the world for a new world war
WWIII, or at least the brilliant and brief end of it, has already been paid for. Just pray that we don't blunder into it. Just remember, the neocons in the US are insane. Good Luck.
Ever hear of Massada or the Sampson option?
I think you are proceeding from the false assumption that any "winners" in a war would want to rebuild the losers. Fact is, many of the potential "winners" might be just as happy to keep a jackboot on the neck of the losers, rather than give them relief.
Do you really think Japan or Germany would have be "helpful" in rebuilding those countries they invaded? Really, only the US seems to like tearing something down just so they can rebuild it for them.
If the winner were China or Russia, do you really think they would come up with a "marshall" plan to rebuild the US?
Look at the improvements to Korea under Japanese domination. The US did the same in Japan after the war. To call that benevolence is debatable. The US has greatly benefited by making Japan it's "unsinkable battleship" in Asia. Okinawa is still under US occupation from the viewpoint of the Okinawans. And Japan has had two decades of economic boom followed by two plus decades (and counting) of economic bust since the war.
The US does not help anyone except when it benefits the US. That Japan has also benefited, while serendipitous, is incidental to the US efforts and intent in Japan.
Yes. Vampires do have use for them, though.
Who used them anyway, except possibly as a contrary indicator.
Everything related to WS should be avoided at all costs. Think of it as Risk abatement.
Better your own apparatchiks than your enemies'.
This is in fact good for Russia for two reasons.
1) Russia is not insolvent, quite the opposite. Russia has huge assets it can now play into its advantage. If Greece or Ukraine are downgraded, it pushes the cost of borrowing up thereby accelerating the spiral into default. Russia is not making new debt, so the increased cost do not matter.
When the agencies downgrade Russia they are mainly downgrading existing assets held by Western banks. These banks are the biggest losers. The lower grade is a reflection of the perceived risk of war with Russia - economic or hot. In fact, sanctions may be enough to stop Russia paying.
Companies still need financing, but they are barred from the Western markets anyway. If a Russian company would need to refinance its loan and cannot do so because of sanctions, they can simply argue force majeure and defer payment.
2) Chinese rating agencies are not downgrading Russia, instead they rate Russia in the highest grade. This reflects the fact there are no political obstacles to Russia paying China in full, even in the case of hot war over Ukraine.
What Russia and Russian companies can now do is refinance their outstanding loans with new money from China with a low interests based the high Chinese rating. As the Western loans will be trading at a discount due to the low rating, they can buy back their outstanding debt at maybe 70 cents to the dollar.
It could in fact be a Russian strategy to spread us much FUD (fear, uncertainty and doubt) into the West as possible. The fear is not unfounded; if a shooting war starts, the West might lose their assets completely.
All three major Western "ratings agencies" were proven to be frauds a few years ago. Moscow merely needs to reference the following:http://www.reuters.com/.../ratingagencies-rulings...
This is it, no fuckin' around anymore, world war three is imminent!
https://www.youtube.com/watch?v=yloaBw80fV4
I just sh*t myself....
So is that "thumbs down" to 30 yr bonds? I like to hold to maturity.
/s
If you look at the stock market, no, growth will be strong. if you look at the bond market, the US is heading into a recession. One of them must be wrong. Take your pick, though, in my personal experience, the bond market is a lot smarter.
"whaah whaah, they only tell us what we need to hear, not what we want to hear... ban them!"
not saying Russia has a monopoly on this behavior, you could insert XYZ in their place when it comes to audits and that's the typical reaction you'll get...
"Thus the agencies became the de facto watchdog over the mortgage industry. In a practical sense, it was Moody’s and Standard & Poor’s that set the credit standards that determined which loans Wall Street could repackage and, ultimately, which borrowers would qualify. Effectively, they did the job that was expected of banks and government regulators. And today, they are a central culprit in the mortgage bust, in which the total loss has been projected at $250 billion and possibly much more."
-NYT
They help my shorts
Can't trust those "objective" parties.
We love you, Sean Egan.
Apparently both the Chinese and the Russians, when putting together their own new ratings agency, thought well enough of the credibility and integrity of Egan-Jones to make the firm their third partner.
I wouldn't let those agencies value my kid's shitty diaper.
"It's money-good collateral!"
Why? They rated much worse shit AAA.
Investment grade mobile homes with fantastic insurance deals! Look over there -----> was that Elvis?....
x*'AAA'*x !!!
[/ta da]
so long mother fuckers...
fuck off mark zndi u bitch.
Roger that, and BTW, screw banning. I'm sure the Russkies still have some small nukes they can deliver to said agency HQs. Would be doing us all a favor.
The Bear is Bullish.
Kremlin loyalty rating forever!
These "ratings" agencies are a complete farce! Another part of the grand illusion.
If any one of these agencies even whispers a down grade of any big dog banks here in the USSA they are bitch slapped back in line.
FUBAR and getting more FUBAR!
Look for the Japs to agree (indirectly) the Koreans already left they got their own gig
The "isolation" of the West continues unabated.
I'm not sure that this is a good idea but it is surely an interesting one.....
Of course it's a good idea! They will soon have their own.
http://www.ft.com/intl/cms/s/03ae1bb8-eb2c-11e3-9c8b-00144feabdc0,Author...
hyper modern civilization
.
lead follow or get the fuck out of the way
Finally! I do wonder though - for how long is the world going to take the "opinions" of these bogus rating agencies? I mean - FFS, these were the SAME people who gave tripple AAA to Lehman JUNK 2 DAYS before the collapse! Of course they were not responsible since "it was just an opinion"... what a joke!
It couldn't happen to a nicer, better dressed bunch of frauds.
They should be banned here to!
Who in the world is still actually gullible enough to believe a single word coming from those sociopaths?
HFTs? And "gullible" is not exactly the right word.
Wife, daughter and writer of controversial FEMA camp movie ‘Gray State’ dead in ‘murder-suicide’
yea, I'm sure he didn't have PTSD or anything. Definitely a gov't conspiracy. Definitely.
The next-door neighbors said Crowley changed his appearance last fall, cut his hair short and started wearing fatigues.
“We noticed the change in his appearance,” Collin Prochnow said. “His personality didn’t seem to change. We never got into any kind of politics.”
Photos on Crowley’s Instagram account show him posing with an arsenal of firearms in his garage. One image shows him in a flak jacket, another in a gas mask. It was not known if the weapons and paraphernalia were real or props for his movie.
.... how does one say"pretzel dick" in russian?
i can't type here russian words and english don't have a sound to type it right
so dick= chlen
you need to take sound from "p[u]t" and pronounce "[u]zlom" with it. [u]zlom= pretzel
I wonder when ZH site starts supporting UTF-8 characters... ASCII is so passé.
tell it to administrator
I wonder when ZH site starts supporting UTF-8 characters... ASCII is so passé.
To be fair to our Ruski friends, the agencies are complete and utter rubbish. The "JD and Associates" of the financial world.
China and Russia to launch new credit rating agency in 2015
CdN MSM report CdN fed says will not follow other countries debt for grand children policies...
As North Korea did that :D
11 weeks & 4 hours.Are you from telaviv or Kiev?
After the bitch-slapping given to S&P, its not like a rating agency is going to given an evaluation of Russian-denominated debt, for any entity, without running the rating through an list of Federal agencies, starting with the Department of In-Justice.
The ratings agencies are one of the syndicate's biggest assets.
They can be used to bankrupt countries, wage economic war, bankrupt a corporation, or something just as simple as routine pilfering and skimming.
Anyone who still believes the ratings agencies actually perform a public service need look no further back than 2008 when they "couldn't believe they missed it". Bastards. All of them.
And if you pay us this much, we can be even more blind.
" so we assume that they’re completely independent and not subject to political pressure. "
so diplomatically said. lol
couldn't happen to a nicer bunch of parasites.
sayonara morons
Russian news:
Thousands of Armenian protesters took to the streets last week, demanding that Russian authorities hand over Permyakov — a soldier at a military base in Gyumri who police say has confessed to killing six people, including a two-year-old girl. A six-month-old boy was also wounded in the attack, which took place last Monday, but he survived.
The "Anti-Maidan — Armenia" group responded to last week's demonstrations by calling the protesters "Nazis" — the same term that Moscow's politicians and state-run media had used to refer to the opposition in Ukraine.
"Putin, send in the troops!" the group said on VKontakte. "All of the Russian-speaking population in Armenia is now in danger!" The group also proclaimed: "Russia is Permyakov, and Permyakov is Russia."
Your dashed hopes . Sigh .
Simply copy + paste articles about Russia that are published around the world for lates 24 hours.
But Ruskie payed trolls hate truth about Russia, don't they?
:) Enjoy Russia news!
It's not a news, it's just some stories with 20% of truth and 80% of bias analysis
like this one Russia outlaws films that 'threaten national unity' or 'defile culture'
Another bs, Russia outlaw Russia sponsored films with antiRussia rhetoric, you can make any films with private money in Russia
We all are tired of watching you embarrass yourself. No worries though. The world also needs idiots and morons .
it's obvious that Russia has problems since the US and IMF declared Russia a pariah state and Putin the baddest persona non-grata who ever lived. No surprises there.
The question is, how do you deal with it and why are you bashing your country when you know that the Jewish Zionist cabal is hard pressed to start WW3 with Russia. If Russia fails to engage, then it will be the war against ISLAM.
Are you a Zionist or are you Jewish?
No, I am a person who knows Russia, Russians & Putin regime lies and crimes & manipulation.
Person who has lived under Russian occupation and undersdands well what is happening from the ground and not from regime propoganda channels.
You can poop as much on Russia as you want, I guess there aren't much people here who give a sh*t about it. But maybe you wake up on a very,very shiny day realizing that NATO/US has dropped a big pile of sh*t on you.
I know who is majority here. Have no illusions :)
and I know how Putin regime invaded Georgia & Ukraine and why. It's not me who lives under Putin propaganda lies spell. But you my friend.
Asshole, Russia did not invade Georgia, Georgia attacked with full force, in the process killing Russian peacekeepers. Russia responded to Georgian warmaking, and silenced the tie-eating Zio slave.
Also, there is no evidence that Russia invaded Ukraine. Tho' I think it a pretty certain thing that they did assist the rebels. But then, ZioNato has been arming and encouraging and instructing the Scum Nazis. Brennan anyone?
Now me thinks you are a Muzzie from Chechnya or Kososvo.11 weeks and 4 hours.
Can't you tell?
It's 'American Patriot (Parrot)' in his new years look.
#Russia
Authorities in Lithuania have begun distributing a 98-page booklet advising citizens how to react in case of natural disaster, major accidents -- and war. Officials say the information is urgently needed because of Russia's aggression against its…
more:
http://tersee.com/#!q=russia&t=text
These are corrupt non-neutral organizations .
All three major Western "ratings agencies" were proven to be frauds a few years ago. Moscow merely needs to reference the following:http://www.reuters.com/.../ratingagencies-rulings...
This will not hurt the West at all, but will hurt Russia.
Russia is now saying it will announce it's own risk level of it's debt? Hahahaha. Lemme guess.... it's all AAA!!
Kinda like the ussa... yes?
I heard on late night TVee that the get rich quick system is Guaranteed! Just like AAA
Am sure i seen a short interview with Fitch's CEO on RT the other day discussing their investment increase in Russia going forward.
Ratings Firms (JOKE) and the Accountancy&Auditors should be sent packing immediately. They are so captured by Vichy DC and GS/JPM it HURTS.
PARASITIC SCUM ONE AND ALL
I want the Russians to grade the debt of Europe and North America. Would be good to have an alternative POV on those very important things as a Western sovereign nation's debt.
Russia's debt to GDP is among the world's lowest and yet, their currency and debt are punked into oblivion because the monopoly on bitch slapping fiat and paper is with the American ratings agencies and banks.
In fact, the propaganda is to thick that both US and UK (nevermind Japan) can print into oblivion and still talk a big game as if they owned the town. Bullshit.
US took on trillions in debt since 2008 and yet somehow, the USD is once again emerging as an alleged strong currency. Why? Because the paper monkeys are sitting in the US and telling everyone else that it is so.
Long CHF and soon RUB.
uhhh, the russian default in the late 90's might be a reason they have no credibility. Being highly dependent on oil is also another reason.
the US would have defaulted 4x over if it hadn't been for the jackboots on the global jugular and everyone forced to swallow USD cum or be obliterated
US of A is enemy No. 1 to global peace and prosperity and more specifically, the Zionist conspirators and co-conspirators in DC and Wall Street are the worst imperialists and oppressors that have ever roamed the planet.
"the US would have defaulted 4x over IF"
IF babushka had weels she would be a trolley.
But it's Russia that has defaulted and it RUB that has lost half of its values - not USA and USD
I wish Russia would default again. Just walking away from all debt with the West. What is the West going to do? They need Russia's gas (and oil) in the West or the lights go out. West will not do anything as a result. Actually, all that Russia needs is a pact with Germany and settle all trades in Euro.
Russia and Europe have all they would ever need to support its populations. China and India are connected to Europe and Russia by land. Even Africa is close enough.
Who needs North America? Who needs Wall Street and DC bullshit? The shysters in London will fall in line.
Done. US$ is kapputt.
THAT IS WHY THE US WANTS WAR and is stirring the SHIT POT so that the kaka schmeers the Russians.
The Russians are NOT our enemy!
America is BROKE. Whatever your Babushka trolley analogy is supposed to say. I don't care. The truth is, that America is broke and the bullshit needs to stop.
thugs
Ramming speed.
PTR, that's too funny. Had to log-in to upvote ya.
Obama did a great job of abusing his political office to screw up the global economy. He truly has no idea how anything works. It is a lot easier to break than build. Transactions require trust on every level. No credibility means no transactions. The USD is a dead man walking.
Russia needs $30-40 oil like it needs a hole in the head.
In other words, Russia needs $30-40 oil!
Would Russia be protesting the "fraudulent" ratings of Moody and Fitch if those ratings were AAA?
Hmm....no, methinks Russia would be as happy as a pig in shit with that rating.
Yup; shooting the messenger will fix everything.
5eOV2a3 doth protest too much
Not quite as happy as all the CDO's for sale in 2005, 2006, 2007.
I'd like to know why these 3 crooks are still in business.
Are you guys on the list to be judo-flipped by Vlad?
Better get on the list!
i week & 2 days.
Rating agencies are a game playing farce (like students rating their professors../)
ps: I rate the us govt at zero
western ratings agencies are required to do business with western banks. is putin saying he will no longer do business with western banks?
Dagong rates
Russia A/stable
USA A-/negative
http://en.dagongcredit.com/ratingAnnouncement/countryList_9.html
One more WMD, often used by the US Federal Government, is retired from service.
This is turning out to be a great day ...
except that Russia is not over indebted?
;-)
Who are we kidding, the bans on Russia created more problems to Europeans (which are allies, they are morons but still allies) than to Russia itself?
ratings agencies, more black comedy.
usa ratings agencies are called shills in a con game. if you try to get business for yourself by hiring your brother in law to vouch for the great work you do while he pretends to be a customer of yours you are committing a crime. shills are illegal, that is, unless you make them legal which is what the supreme court ruled under a free speech exception, ironically.
that is why you kill all lawyers first.
The writing is on the wall, Russia just said Fuck you to the banks. The USD will rise even higher and then the devaluation crash and a new world money system is on it's way. Why are all counties buying tons of gold. They see what's coming next.
SIgh, my county hasn't bought any gold yet...
Another US government agencies bit the dust......
Ah, rating agencies...
The same agencies that gave an upgrade to Greece shy before the failed last-chance presidential election of Dimas but, of course, put Greece down afterwards with Syriza in the lead of next elections.
In 2011 the French announced their intention to set up their own ratings agencies. Never forget the S&P guy who was sacked for downgrading the US debt, nor all the AAA+ manure that nearly destroyed western banks altogether.
See https://thebusinesspanda.wordpress.com/
The Western ratings agencies are obviously corrupt. It's a pity as a lot of people count on them being honest.
Tyler: "All sounds very similar to the responses that troubled and over-indebted western nations had when the ratings agencies dared to downgrade them."
In the case of Western nations, the ratings were probably reasonable. In the case of their ratings for Russia, they are probably politically motivated.
Just another example of how Western MSM, ratings agencies and every other org sucks at the teet of government and does what's expected of it.
"Over-indebted"??????? Exactly which countries would that be? Everyone but us, and our 'special' friends, right? It seems to me that all the penalities that these companies continue to be charged with should point out the obvious insider activity that's been going on for decades, or eons if you count by the collapse of fiat money systems per civilzation.
From now on you have to ask yourself the question: "And what if Russia and China act together?" If I cut off Russia from Western financing, what if China provides the Russkis liquidity? If I send the marines to take some disputed Chinese islands, what if the Russians join in? The biggest weakness in current strategic thinking is that we see Russia and China as separate because we can't imagine them working together.
Downgraded, bitch.
I heard that only capitalists sell when it's high and the dollar is very high.
Je suis Egan Jones....
Way to go Russia!! Tell them to go fuck themselves.
Russia tells the 3 blind mice to fuck off! Love it.
Australia always gets a gold star when we hand in our bank home-work :)
Fuck we are a bunch of kiss-asses.
didnt they just announce a new chinese rating companylast week too?
But what about the fact that Bank of Russia "exists in a Russian context and is subject to the Russian media's reporting, which tends to give a single narrative - a very positive narrative when it comes to reporting - particularly the Russia story .."? - I guess that is not a problem at all ...
Just like the FED bank in America. At least in Russian they don't have Israel running thier Gov.
I wonder how many barrels of oil Moody produces?
Tyler, you son of a bitch. There are 7 -- count em, 7 -- intervening articles between this one and the previous Russia-centric one. Damn you. We Russkyphiles here at ZH thought you granted our petition, guaranteeing that at least every 5th article will be Russky-centric. Don't go back on your word, Tyler. More Russia. More Russia. More Russia.