Chinese total private sector debt (level and relative to GDP). This helps explain why Moody's downgraded China's credit rating today...
Source: Longview Economics
Moody’s cuts U.S. credit outlook from stable to negative. Will markets just shrug it off on Monday?
Source: Trend Spider
A government shutdown would reflect negatively on America’s credit rating, says Moody’s, the only remaining major credit grader to assign the US a top AAA rating
“While government debt service payments would not be impacted & a short-lived shutdown would be unlikely to disrupt the economy, it would underscore the weakness of US institutional and governance strength relative to other AAA-rated sovereigns that we have highlighted in recent years,” analysts led by William Foster wrote in a report Monday. Source: Bloomberg
Moody's has cut credit ratings of several small to mid-sized US banks on Monday
Moody's said it may downgrade some of the nation's biggest lenders, warning that the sector's credit strength will likely be tested by funding risks and weaker profitability. This does not come as a surprise to us as US banks are facing several headwinds at the time being: 1) Inverted yield curve and lower trading / M&A activity weighing on profitability; 2) Deteriorating loan book quality due to Commercial real estate exposure but also US consumers starting to being hit by rising debt costs (credit card, mortgages, etc.); 3) Deposits withdrawals. Source: reuters
Who is left in the AAA club? (the US is now split-rated AA+)
Source: Jim Bianco, Bloomberg
US Credit rating by agency
Moody's: Aaa S&P: AA+ Fitch: AA+ Source: Evan
BREAKING: Fitch downgrades the United States' long-term credit rating from AAA to AA+
Fitch says that "repeated debt-limit political standoffs and last-minute resolutions" are to blame. They note that debt-ceiling standoffs have "eroded" confidence in fiscal management. Source: The Kobeissi Letter, Bloomberg
