Latest news with #creditRating
Bloomberg
28-05-2025
- Business
- Bloomberg
Hong Kong Asks Pensions to Form Plans In Case of US Rating Tweak
Hong Kong officials told the city's pension funds to formulate appropriate strategies in the event of 'any significant market events' regarding the credit rating of the US government debt. The Mandatory Provident Fund Schemes Authority, which regulates Hong Kong's pension system, said in an emailed statement on Wednesday that it had recently reiterated a reminder to all MPF trustees to evaluate the potential implications if the US loses its last AAA rating by an approved agency.
Asharq Al-Awsat
26-05-2025
- Business
- Asharq Al-Awsat
China Says Moody's Reaffirming Ratings Reflects Its ‘Positive Prospects'
Moody's decision to keep China's ratings and outlook unchanged is a "positive reflection of the positive prospects of China's economy," China's finance ministry said on Monday. The country's incremental and existing policies will jointly provide firm support for economic development, the ministry said in a statement. Moody's on Monday maintained its A1 ratings and negative outlook on China, but said trade tensions between the country and its major trading partners could have a long-lasting negative effect on its credit profile.
Times
26-05-2025
- Business
- Times
Triple-whammy hitting the US economy
L ast week was tough for US Treasury bonds, the IOUs issued by the US government to pay for that portion of federal spending not covered by tax revenues. As Dominic O'Connell noted here on Saturday, yields on Treasuries (which rise as the price falls) rose sharply after Moody's became the last major ratings agency to downgrade America's credit rating from the highest level, while Donald Trump's 'big, beautiful bill' came a step closer to being enacted and, with it, raising government borrowing by an estimated $3 trillion to $4 trillion over the next decade. A third — and important — factor driving the sell-off was that an auction of $16 billion worth of 20-year Treasuries on Wednesday drew only weak demand, implying a reluctance on the part of some investors to lend to Uncle Sam. Investors demanded a 5 per cent coupon (interest payment) for the risk they were taking on.
Reuters
23-05-2025
- Business
- Reuters
Moody's withdraws key Thames Water rating over lack of information
LONDON, May 23 (Reuters) - Moody's has withdrawn the credit rating of the financing arm of Thames Water's parent company, citing a lack of information on the embattled unit. "We have decided to withdraw the rating (of Thames Water Kemble) Finance PLC) because we believe we have insufficient or otherwise inadequate information to support the maintenance of the rating," Moody's said in a statement. Thames Water, which serves 16 million customers in and around London, is at the centre of a public backlash over the amount of sewage it has been pumping into Britain's rivers and its huge debt that has raised the prospect of re-nationalisation. It is the primary operating subsidiary of Thames Water Limited, which is in turn owned by Kemble Water Finance Limited, the financing subsidiary of which is Thames Water (Kemble) Finance PLC. Despite the withdrawal, Moody's said it was maintaining ratings on the two other parts of the complex Thames Water structure, Thames Water Utilities Ltd and Thames Water Utilities Finance Plc. It did not provide any further details on what information was lacking with regards to the Kemble financing unit. Prior to the withdrawal, the rating had been a default-territory 'C' grade.
South China Morning Post
21-05-2025
- Business
- South China Morning Post
Singapore's central bank chief sees ‘no alternative' to US dollar assets despite downgrade
US dollar-based assets have 'enduring advantages' and remain virtually irreplaceable in the global financial system despite the United States losing its top triple-A credit rating, according to Singapore 's central bank chief. 'They are the dominant, safe assets for use in the financial system, deeply embedded,' Monetary Authority of Singapore Managing Director Chia Der Jiun said at the Qatar Economic Forum on Tuesday. 'The US$28-trillion Treasury market is fundamental and systemic to the global financial system and there is no alternative for this point.' Moody's Ratings last week stripped the US of its top credit rating , a landmark move that casts doubt on the nation's status as the world's highest-quality sovereign borrower. The headquarters of the Monetary Authority of Singapore, the city state's central bank. Photo: Reuters In lowering the US by one notch below the highest investment-grade position, the credit rater joins Fitch Ratings and S&P Global Ratings in downgrading the world's biggest economy. US long-dated debt initially sold off in response to the Moody's downgrade.
