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Moody's To Junk Spanish Banking System In Hours
Nearly two weeks ago we penned "These Three Spanish Banks Will Be Downgraded Tomorrow" which showed which banks had a rating higher than the sovereign following Moody's long overdue Spanish downgrade, and thus were about to be downgraded by many notches. Today, after a ridiculously long delay whose only purpose was to buy time, Moody's is about to junk virtually the entire Spanish banking sector, as was widely expected.The downgrade is expected to happen within hours.
From Expansion (google translated)
After cutting the rating of Baa3 and Spain to threaten to put Spanish debt at the level of junk bond no later than 30 days, has reviewed the notes of all banks. "We have reported a reduction of two or three notches (steps) to almost everyone. Do not look at individual financial statements of each entity. Do not discriminate, "added the sources.
And is that the sector is particularly annoying because automatically cut the rating of the bank once they do the same with the state. The statement, as indicated by financial sources will be announced after twelve hours have told the entities, ie, probably after 23:00 tonight.
The biggest problem is that many entities will enter into the very undesirable group of fallen angels. Typically, banks with a rating lower than the state and how it is now just one step from losing investment grade, most of the financial sector will receive a rating of junk bond. Possibly, only the big banks such as Santander, BBVA or get rid CaixaBank will fall to that level.
This is the third hit Spanish banks received in just over a month. Moody's has already cut the rating of several entities on 17 May. Downgraded the debt of 16 Spanish companies between one and three steps, also as a result of cutting Spanish debt rating a few days.
Of course, since no Spanish banks have access to the non-ECB mediated market, this move is largely symbolic but further cements the country's status as financial system pariah and the next Greece.
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We already kicked the RA's out so we care not. Joke's on you because now you're stuck rating only US debt.
Better print, opps Spain can't print, bummer.
Can't they just call Germany?
"Hi, Minty Printapoulus speaking, how can I help?"
"Hi, Minty, it's Juan. How's the family?"
"Very good, the free fruit deliveries are helping very much. Though my wife grows very tired from waiting in lines all the day."
"Good. Good. Say, Minty, you remember we talked about a delivery of product 'X'; the 'E10' kind, yeah? Well, can we place an order for say 5 billion units? We'll pay extra for quick - and quiet - delivery!"
"That will take some time, I think. We must, of course, see to our own needs, as well as those of Ernesto and Paddy. Luigi has expressed an interest, also. And I hear Cyprus Mike may also be in the market soon. But I'll see what I can do, my friend".
who cares what the eu does re ignoring the rating agencies....we all know Spain is totally insolvent and no-one will touch their debt with a barge pole...we dont need any RAs to tell us that.
Hah ha ha....
When you tell the NRSRO's that you don't need them anymore, you ain't gonna pay em', that they're work is a worthless piece of shit, attack their very business model and living, what the fuck you expect?
You should expect wholesale across the board downgrades as they "set things right", make amends, correct the errors of the past, become responsible, fix what's wrong....
Just be you, Europe they gonna be shafting to fix their problems.
Don't bite the hand that strokes your wally.
when wall street tells you bad news is on the way, BTFD!
Unfortunately that is part of the price paid Spain (and also the rest of Europe) to try to end the crisis. At this time, Spain is the center of attraction of this problem. But this situation is all over Europe. We'll see to Italy and France to go through this same path. Finally, do not forget that UK and Germany (yes, Germany) are not far from facing the same crisis. We must prepare ourselves to face this situation ... and be ready to exploit any opportunities.
If I post my neighbor's house as "collateral", will the ECB give me a billion euros?
hahahahahah.......very good !
No need. Just register yourself as a Spanish Bank and offer a couple of beach towels as collateral. That ought to be good for a few billion.
I pledge my cat's box as collateral. Those things are high in Nitrogen and make excellent fertilizer. I reckon I should get 2 or 3 billion for the box easily. Where should I go to collect my check?
No need to worry. This week's EU summit will come up with a solution.
let me guess? a plan!
no! a plan to plan!
I disagree. more is needed. let's have a plan cubed and call the thing fixed
Let me help.....I'll call the press conference.
I'm betting the farm that on friday EU leaders will decide to plan a schedule to come up with a plan that gives some blurry details about a vision how the EU and the Eurozone should look like in 5 to 10 years. One should also look for sentences like " sending a strong signal to the markets", "we're on the right path", "bla bla bla helps to restore confidence". It all feels pretty Soviet Union to me.
Why don't they just call up Obamie and ask him what to do. He'd have the answer because everyone from the MSM has told me he's the smartest president ever! And they are like the second smartest people ever. I know because they tell me this everyday and they are "Journalists". So it must be true. World fixed.
amigos adiós ves ahí abajo
The Three bankster Amigo's get junked.
Moody's: you can always count on a ratings agency to be late with a downgrade. Pathetic....
CREDIT RATINGS.....you're doing it wrong
There must be some mistake.
Moodys hasn't heard about the Spiderman towels.
How are these fuckers (ratings agencies) still in business??? ALL of the sub prime is their friggen fault!!
We dont need no CRA..
We dont need no damn junk ratings..
Hey CRA....leave them PIIGS alone...
"Within hours"... Let me guess, they will announce it in exactly three and a haf hours, right after the European close?
No, it's when Tyler comes back from lunch.
Which is when? 23.00 GMT?
What do i look like, His fucking secretary? Jesus H... Besides, My hairy legs dont look good in pantyhose.
in slewienomics, thie is bullish for: risk0ff
Why are bank bondholders continuously safeguarded? Why are they not forced to accept a haircut? They displayed the same indifference to risk and real estate bubbles as the bankers and politicians - and Keynesians.
I'm still waiting for Moody's to junk the Federal Reserve System. While they're at it they might as well junk the BoE, BoJ, RBA.......
If I were a RBS/NatWest Customer I would pull my money.
This bank thing will spread to England and it is about time a bank run took place, for no other reason that if regulators aren't regulating and banks are lying along with their paid for politicians, then it is time for the people to show them they do not appreciate being made fools of.
I hope you are not a fool, take what is yours and put it in a safe place or big bro or a facsimile thereof will relieve your assets for you.
I hope you are not a fool, take what is yours and put it in a safe place or big bro or a facsimile thereof will liberate your assets for you.
Fixed it.
Just like muggers liberate people of their vallets every day.
A what?
A Wallet.... I will promptly junk myself (if possible) for being unfunny and a terrible speller.
Were you channeling The Count from Sesame Street for a second, there?
Moody's should junk itself, then S&P and Fitch. After that Moody's can start junking others.
Via con dios amigos. Kiss your Keyesian asses goodbye.
This just proves the old adage that 'junk always rises to the top'
* the cream has already been siphoned off by Goldman Sachs....
Sorry if this sounds facetious, but if I know the US market well, it'll rally when the news hits.
My father in law has all his eggs in the one basket that is Santander in the UK. After all I have read on ZH Ive told him maybe he should move his investments out, but he won't listen. So the question is this, is he fucked?
Santander UK is technically a seperate entity to the main Santander operation, sharing only some management and backroom support. As such, it is pretty much independent of anything that happens to it's parent company and money will certainly not be plundered to keep foreign sections of the company afloat, so... yes, he's fucked! No doubt about it.
You mean technically separate in the Corzine type of way?
Ana Patricia Botin doesnt agree with you.
Does a bear...
Moody's has not as strict conditions as S&P regarding the rating ceiling of corporates. Specifically, corporates can have up to two notches uplift relative to the souvereign when a majority of their revenues is created outside the home country (as in the case of Santander). So, expect Santander and BBVA to be rated *above* the sovereign, likely at Baa2.
Burden sharing MUST happen in a few spanish banks. Unless Spains gifts the Eurocup to Germany, that is.
Junkapooliza 2012, except there are no druged out girls having sex with everyone.
Monday morning quarterbacks!
Let's get this party started already. I've been pre-gaming so long I'm developing cirrhosis.
Can't they just bet the country on Portugal to win the semi and throw the match?
http://1.bp.blogspot.com/-8Fg6qufFYDI/T8IlYK25sOI/AAAAAAAABKk/nVLaM7JFl2...
hope they junk them in spades.
http://covert.ias3.com/expose/
oops