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Analysis and Comment (11)

Bank downgrades have sparked anger in South Africa. Bank downgrades have sparked anger in South Africa. Nic Bothma/EPA

Why South Africa bank crisis is not a big threat to the country’s sovereign rating

It’s an unnerving time for Africa’s banking industry. On August 19, the ratings agency Moody’s announced it had downgraded by a notch the risk rating of South Africa’s four biggest banks – FirstRand, Standard…
Qantas CEO Alan Joyce is under pressure, with the airline flagging a $300 million half-year loss. Qantas CEO Alan Joyce is under pressure, with the airline flagging a $300 million half-year loss. Alan Porritt/AAP

Runway to junk looms large for cash flow negative Qantas

Qantas has flagged deteriorating trading conditions and a potential A$300 million half-year loss in a statement to the market that has sent its share price tumbling. The airline has stepped up its cost…
Troubled bank is co-operating with the authorities. Troubled bank is co-operating with the authorities. Rui Vieira/PA

What went wrong for the Co-op Bank?

Collapsing business deals, massive financial losses, and a “junk” rating have made recent months a nightmare for the Co-op Bank. In March it announced losses of £634m for the 2012 financial year, largely…
Credit ratings agencies wield an enormous amount of social, economic and political power. Credit ratings agencies wield an enormous amount of social, economic and political power. AAP

Downgrade your expectations: it pays to be wary of credit ratings agencies

Evaluating the creditworthiness of countries is far from an exact science, yet the influence of credit ratings agencies is extraordinary. Recently, the UK government’s debt rating has been downgraded by…
Subprime ratings have come back to haunt Standard and Poor’s, which is now facing civil action from the US government. Subprime ratings have come back to haunt Standard and Poor’s, which is now facing civil action from the US government. AAP

US government’s lawsuit against S&P puts ratings agencies back in the spotlight

Five billion dollars is a lot of money — and that is the amount which the US Justice Department claims were losses incurred by US banks and credit unions from investing in CDOs rated by Standard &…
Economic policies – not credit ratings – will determine the future of the euro. Economic policies – not credit ratings – will determine the future of the euro. AAP

The Eurozone’s future rides on Italy’s actions, not S&P’s ratings

The decision by Standard and Poor’s to downgrade the debt of nine Eurozone countries last week, followed by the inevitable downgrade of the Eurozone rescue fund two days later, raises important questions…
Italian Prime Minister Silvio Berlusconi’s austerity measures are misdirected and too dramatic. Italian Prime Minister Silvio Berlusconi’s austerity measures are misdirected and too dramatic. AAP

As Moody’s trashes Italy, voters can’t count on Berlusconi

The move by international ratings agency Moody’s to cut Italy’s credit rating for the first time in two decades will do little to ease concerns about the Eurozone’s debt crisis, despite global markets…
Standard & Poor’s could still downgrade the US credit rating, despite the debt ceiling deal. Standard & Poor’s could still downgrade the US credit rating, despite the debt ceiling deal. AAP

Explainer: the role of credit ratings agencies

Washington lawmakers in the US House of Representatives have passed an agreement hammered out between Republican and Democrat leaders designed to avert a US debt default. The move is a further step towards…
Despite attempts at regulatory reform, ratings agencies still act with little threat of litigation. Despite attempts at regulatory reform, ratings agencies still act with little threat of litigation. AAP

Should investors sue ratings agencies? It’s a matter of opinion

Standard & Poor’s downgraded Greece’s sovereign debt rating by three notches on Monday, reflecting its view that it would be next to impossible to imagine a scenario where the country could restructure…
Ratings agencies face tougher rules, but how much regulation is too much? Ratings agencies face tougher rules, but how much regulation is too much? herval/flickr

Reining in credit rating agencies

The behaviour of credit rating agencies is back in the spotlight, as Portugal struggles with its large debt burden. Credit rating agency Fitch has copped some criticism for cutting Portugal’s credit rating…

Research Briefs (1)