Sukuk investors position amid defaults Oct 3, 2009
From the rating perspective, an analysis of the asset will be inconsequential; instead, we will focus on the creditworthiness of the corporate obligor, with the final assigned rating depending on the ranking of the sukuk vis-a-vis the obligors existing senior unsecured obligations. Usually, the obligor will be the issuer (borrower); in some cases, however, the task may fall on the originator, sponsor or lessee via the existence of a purchase-undertaking agreement. (The Star Online, Malaysia -- Business)
Consistency in credit ratings Oct 2, 2009
Investors appreciate that ratings can change during a cycle, as our view of future creditworthiness evolves. But they wish to avoid excessive volatility, especially of higher ratings. (FT.com -- Markets)
Lawmaker wants to hold ratings firms liable for inaccuracies Oct 1, 2009
The agencies are gatekeepers, issuing ratings on the creditworthiness of public companies and securities. Their grades can be key factors in determining a company s ability to raise or borrow money, and at what cost securities will be purchased. (Boston Globe)
Reform Conservatism or Deformed Conservatism? Sep 30, 2009
While most conservative criticisms of the Community Reinvestment Act s role in the housing bubble have, with some justice, focused on Bill Clinton, Bush also preferred diversity to creditworthiness. As Steve Sailer has reported, the biggest flood of CRA assurances came during the presidency of George W. Bush, who repeatedly called in 2002-2004 for 5. (The American Conservative)
Age of Austerity Awaits G-20 as $9 Trillion Debt Haunts Rogoff, Greenspan Sep 25, 2009
Their next challenge will be to reduce the resulting debt before it sparks higher bond yields and erodes their governments creditworthiness. Theres no question that the most significant vulnerability as we emerge from recession is the soaring government debt, said Harvard University Professor who is a co-author of a new history on financial crises. (Bloomberg -- Canada)
The Case for Higher Interest Rates Sep 24, 2009
Alternatively, reckless expansion of cheap money and government deficits undermine the nation s currency and creditworthiness, triggering debt repudiation and ruinous devaluation. Some are saying that the U.S. is following the path to doom even as the Fed insists that Japan-style deflation and the devaluation of the dollar are impossible. (The American Conservative)
Small change: Does ‘microlending’ actually fight poverty? Sep 20, 2009
They created their controlled experiment by altering the algorithm the bank used to evaluate creditworthiness so that some borderline applicants were randomly denied loans while other otherwise identical applicants had loans approved. The researchers then followed up with the borrowers and nonborrowers to see what difference the loan had made. (Boston Globe)
Dubai World planning shake-up Sep 20, 2009
5 billion Islamic bond package as a signal of Dubai s creditworthiness. Refinancing the Nakheel debt, and to a lesser extent $1 billion in sovereign debt due in November, are seen as the real test of Dubai s ability and perhaps willingness to repay, Deutsche Bank economist Caroline Grady said in a recent report. (Orangeburg Times and Democrat, SC)
How to avoid the repo man Sep 19, 2009
Better Business Bureau advises troubled car owners on how to avoid losing their vehicle and their creditworthiness. According to the American Bankers Association, the number of direct auto loans that were at least 30 days delinquent increased from 2. (Belmont Citizen Herald, MA)
CME signs 5 funds to clearing venture Sep 19, 2009
A clearinghouse is seen as mitigating that threat by stepping in between the two parties, guaranteeing each side of the trade and reducing the risk that each party takes on the creditworthiness of its trading partner. What do you think. (Crain's Chicago Business)
Transcript of a IMF's Conference Call on the Publication of the Paper Crisis-Related Measures in the Financial System and Sovereign Balance Sheet Risks Sep 18, 2009
To what extent do you think that governments creditworthiness depends on the central banks balance sheets ... This approach by construction is indeed the best way in which countries can safeguard and preserve their sovereign creditworthiness ... Ms. CHEASTY: I think maybe creditworthiness is a little bit too specific a concept in the sense that what is very scary is if you thought the central bank s ability to carry about monetary policy might be compromised because it has bad assets on its... (IMF News)
Credit Default Swaps Lose Disaster Stigma as Confidence in Market Rebounds Sep 17, 2009
Prices rise when perceptions of creditworthiness deteriorate and fall when they improve. Banks have had unparalleled access to money after Federal Reserve Chairman reduced the target for overnight loans between banks to a range of zero to 0. (Bloomberg)
Estonia's Euro Aspirations Depend on Controlling Deficit in 2009, S&P Says Sep 17, 2009
If Estonia manages to keep its budget within the EUs 3 percent threshold, its creditworthiness will improve, Six said. A budget gap of 3 percent or less means Estonia would almost certainly be eligible to enter EMU at the beginning of 2011, Gill said. (Bloomberg -- Europe)
Diamonds in Post-Lehman Era Provide No Aura as Buffett Can't See Recovery Sep 16, 2009
In all, 1,261 U.S. jewelry stores, wholesalers and manufacturers folded from January through July, a 53 percent jump from a year earlier, according to Dione Kenyon, president of the Warwick, Rhode Island-based , which rates the creditworthiness of businesses in the industry. The total this year is expected to be about 3,000, Kenyon said. (Bloomberg)
Small-biz owners find way to buck financing trends Sep 16, 2009
Banks throughout the country made fewer business loans in the second quarter, largely because of weaker loan demand and deteriorating creditworthiness, according to a quarterly Federal Reserve report. Pages: 1. (Columbus Business First, OH)
No dialing back Sep 15, 2009
It is with this analysis in mind that I fear the emerging government finance bubble risks destroying the creditworthiness of our entire economy. WEEKLY WATCH For the shortened week, the S&P500 increased 2. (Asia Times Online)
Global Recession Is Over, Says OECD Sep 15, 2009
It said it would maintain the UK's AAA rating, despite fears earlier this year that the parlous state of public finances might damage lenders' views of Britain's creditworthiness. The stock market has also reacted positively to the growing economic feelgood factor, reaching levels not seen since the collapse of Lehman Brothers a year ago and the subsequent financial crisis sent share prices around the world into a tailspin. (BusinessWeek)
London Suicide Connects Lehman Lesson Missed by Hong Kong Hospital Orderly Sep 11, 2009
Minibonds are custom-made securities linked to the creditworthiness of companies, backed by collateralized-debt obligations and sold in denominations of $5,000 ... The notes were financial dumplings -- derivatives contracts tied to the creditworthiness of major companies wrapped inside Lehman corporate bonds. (Bloomberg)
Lehman's suicide connection Sep 11, 2009
Minibonds are custom-made securities linked to the creditworthiness of companies, backed by collateralized-debt obligations and sold in de 00004000 nominations of $US5000. They functioned like credit-default swaps in reverse, where the investor stands to lose his principal when the firm named in the note can't pay its debts. (Sydney Morning Herald -- Business)
Claire's Stores, Inc. Reports Fiscal 2009 Second Quarter Results Sep 10, 2009
The Company will continue to assess whether to pay down all or a portion of this outstanding balance based on various factors, including the creditworthiness of other syndicate members and general economic conditions. We used cash in operating activities of $11. (PR Newswire)
Parkland applauds bond sale Sep 9, 2009
But Parkland, by virtue of its financial stewardship and performance, is the only hospital district nationwide to rate at that highest level of creditworthiness, Janning said. Parkland s balance sheet is quite strong, and the bond is the only debt that Parkland will carry, Janning said. (Dallas Business Journal, TX)
Czech Credit Rating Is Safe as Election Row Simmers, Moody's Hornung Says Sep 9, 2009
Its creditworthiness remains quite favorable, even amid the global economic crisis, Hornung said. Stabilization Needed. (Bloomberg -- Europe)
City of Delawares debt rating boosted Sep 4, 2009
The Aa rating is Moody s second-highest for municipal issues, reflecting very strong creditworthiness. An A rating means above average creditworthiness. (Columbus Business First, OH)
* World Business Quick Take Sep 3, 2009
Fitch had lowered the sovereign credit rating outlook for six emerging market economies last November, including South Korea, Mexico and Russia, to reflect higher risks to creditworthiness stemming from the global financial crisis. INTERNET. (Taipei Times, Taiwan -- Sports)
* Even the poorest of the poor can be creditworthy Sep 1, 2009
They have good knowledge of the creditworthiness of their clients, and the clients as well value the trust and have a good credit discipline. . (Taipei Times, Taiwan -- Business)
'Jobless recovery' won't work Aug 30, 2009
It will touch off more sustained calls to replace the dollar as the benchmark currency, raising risk and uncertainty in our creditworthiness. Most of the developing countries we expect to help our recovery have consumers with traditionally high savings rates, mainly caused by a history of risk aversion and the fact that they must themselves make up for any shortfalls in their governments' traditionally weak social safety nets. (NJ.com -- Times)
SEC's Schapiro Says More Derivatives Information Is `Critical' for Probes Aug 29, 2009
Credit- default swaps insure investors against bond defaults and can be used to speculate on a companys creditworthiness. Obamas Regulatory Revamp. (Bloomberg)
'I don't want a bailout' Aug 28, 2009
In Redfearn's case, $1 million in sales last year and a business degree do not trump creditworthiness. "Lenders have returned to the old-fashioned lending standards," says Lee Cornelison, regional director for the SBA in North Carolina. (CNN)
Zimbabwe: Inflation Creeps to One Percent Aug 25, 2009
Not only had the printing of money without production to support it increased inflation, money supply, and lowering the country's creditworthiness, it also resulted in huge budget deficits over the past five years. With the introduction of multiple currencies in February, questions are being asked if government would be able to live within its means this time around. (allAfrica.com)
The macabre joke of inflation Aug 21, 2009
So although the Weimar Republic was not bankrupt from the outset, its creditworthiness was restricted, and inflation saddled the fledgling state with a congenital defect that would have dire consequences. Ironically, the monetary depreciation in its milder form initially helped stimulate the economy. (Harper's Magazine)
Integrity deficit has its price Aug 20, 2009
These differences have had different causes at different times: monetary policy, tax laws, bank regulations, the possibility that a country might introduce exchange controls, and the differences between the creditworthiness of the banks in London and those in the domestic market. The London money and foreign-exchange markets are dominant for trading currencies, raising capital and selling debt. (Asia Times Online)
Fed survey: Banks say loan demand down Aug 18, 2009
Banks across the nation made fewer business loans in the second quarter, largely because of weaker loan demand and deteriorating creditworthiness, according to a quarterly Federal Reserve survey of senior loan officers released on Monday. A smaller percentage of banks tightened loan standards in the May-through-July period, compared with the last survey, released in April. (Denver Business Journal, CO)
Turbo Power Systems Inc. (TPS) Announces Results for the Second Quarter and Six Months Ended 30 June 2009 Aug 14, 2009
This risk is mitigated through established credit management techniques, including monitoring counterparty' creditworthiness, setting exposure limits and monitoring exposure against these customer credit limits. However, due to the limited number of potential customers in each market this is not always possible. (CCNMatthews Press Releases)
SWS Group, Inc. Records Investment Impairment in June Quarter, Expects Write-Down Related to Correspondent in September Quarter Aug 13, 2009
Actual results may differ materially as a result of various factors, some of which are out of our control, including, but not limited to, volume of trading in securities, volatility of securities prices and interest rates, availability of lines of credit, customer margin loan activity, creditworthiness of our correspondents and customers, demand for housing, and other factors discussed in our Annual Report on Form 10-K and in our other reports filed with and available from the Securities and... (PR Newswire)
The bill will fall duefor crisis failures Aug 13, 2009
To keep the interest rate at 1% during 2003-2005, the Fed had to inject as much liquidity as required to prevent a rise of interest rates above the target level, irrespective of the volume or creditworthiness of credit expansion induced by low interest rates. Consequently, liquidity went mostly to subprime markets with the high likelihood of a meltdown to follow. (Asia Times Online)
NEC Said to Hire Morgan Stanley, Daiwa for $2.1 Billion Stock, Bond Sale Aug 12, 2009
The company lacks growth engines and faces further risks that losses at its semiconductor unit will persist, according to Deutsche Bank AG. The financing could help the company maintain its creditworthiness, said , an analyst at Deutsche Bank in Tokyo. Investors want to know how the company plans to revive growth. (Bloomberg -- Japan)
Loral Reports Second Quarter 2009 Financial Results Aug 11, 2009
Risks and uncertainties include but are not limited to (1) risks associated with financial factors and our investment in Telesat Canada, including the global economic downturn, our history of losses, financial covenants in SS/L's credit agreement, the structure of our investment in Telesat, Telesat's leverage and volatility in Canadian/U.S. exchange rates; (2) risks associated with satellite manufacturing, including competition, contractual risks, creditworthiness of customers, performance of... (Primezone Releases)
PM urges global regulators to ensure no repeat of economic crisis Aug 11, 2009
Stressing that it was in the worlds interest to position Asia as the engine of growth, Najib cautioned that a consistent and coordinated global policy was required to ensure that Asia was able to increase its consumption without affecting its creditworthiness. There must also be steps to ensure that Asia was able to reduce its current account surpluses without being vulnerable to speculative attacks on the capital account. (The Star Online, Malaysia -- Business)
DCP Midstream Partners Reports Second Quarter 2009 Results Aug 8, 2009
the creditworthiness of counterparties to our transactions. weather and other natural phenomena, including their potential impact on demand for the commodities we sell and the operation of company owned and third-party-owned infrastructure. (PR Newswire)
Russia Beats California in Bond Market as Credit-Default Swaps Favor BRICs Aug 7, 2009
Created to protect lenders, the contracts also are used by hedge funds and insurance companies that dont hold the underlying bonds to speculate on swings in the markets perception of debtors creditworthiness. The average cost of swaps for sovereign debt from 45 developing countries has declined to 314 basis points, the lowest since October, from 785 basis points five months ago, data compiled by Bloomberg show. (Bloomberg -- US)
* Will the world miss an opportunity for true economic reform? Aug 7, 2009
Lenders are suspicious, worried about creditworthiness and demand high risk premiums. As a consequence, in most countries, credit is still contracting. (Taipei Times, Taiwan -- World)
About profit, not health Aug 7, 2009
The Negative Outlook reflects the strong potential for national health care reform and its possible adverse implications on each company's financial strength and creditworthiness. Though no bill has been finalized yet, and multiple policy schemes are possible, most of the alternatives being debated could weaken health insurers' financial profiles in Fitch's view. (Fresno Bee -- Opinion)
Loop office market falls on all cylinders Aug 4, 2009
With such concession-rich packages, however, comes a heightened focus on a tenants creditworthiness because landlords are picking up a bigger tab for renovations and will go a year before they collect rent. Mr. Buth says most landlords offer such deals only to companies theyre confident will survive the recession. (Crain's Chicago Business)
Shelf companies lay traps for small-business owners Aug 3, 2009
Companies that create and sell shelf corporations often suggest to the buyer that they will be able to use the creditworthiness and business history of the shelf company to obtain credit for their business ... Also, the bank will likely require a personal guarantee, and since the scheme doesn't actually increase the business' creditworthiness, the bank could come after the owner's personal assets in the event of a default. (The Augusta Chronicle)
Derivatives plans spark doubt on CDS Aug 2, 2009
A US legislative plan to regulate the near-$600,000bn market in over-the-counter derivatives suggests lawmakers debate the idea of banning so-called naked credit default swaps, which allow investors to speculate on the creditworthiness of companies. The proposal by key committees of the House of Representatives would push most derivatives on to an exchange or clearing house but leaves open the issue of whether to outlaw CDSs a type of insurance against bonds defaulting in which the... (FT.com -- Markets)
Small cos which need funds Jul 31, 2009
It can reveal the creditworthiness of the company in relation to its peers in the sector, and an assessment of its strengths and weaknesses based on its financial condition. Anyone who sees the report is instantly appraised of the health of the company, says Yogesh Dixit, head-SME Ratings at Crisil. (India Times)
Should Your Credit Report Cost You a Job? Jul 31, 2009
The legislation follows efforts by some states to sharply limit employers' ability to consider a person's creditworthiness in hiring. While credit checks historically were used to screen applicants for financial and government jobs, the practice has spread. (Yahoo News -- Top Stories)
Debt's the way to keep risks at bay, but let return, liquidity have a say too Jul 30, 2009
Lastly, companies belonging to first generation of promoters are a higher risk as they are yet to prove their creditworthiness. From a risk perspective, NCDs score over company deposits as the former are secured against some assets so they are considered to be safer instruments than company deposits. (India Times)
STF offers high interest rate, adequate credit rating Jul 27, 2009
This shows that the rating agencies consider STF a company with a high creditworthiness. And therefore, the risk of non-payment is very low. (India Times)
It'stime to revampthe Federal Reserve Jul 25, 2009
This policy, in turn, has compromised the creditworthiness and soundness of the entire US banking and financial system. The Feds reckless monetary policy has cost the US government. (Asia Times Online)
Town issues low interest bonds Jul 24, 2009
Professor Bridget Lyons, Chair, Department of Economics ce at the John F. Welch College of Business at Sacred Heart University told the Minuteman that, "while financing with short term borrowing can lead to lower borrowing costs, especially in the near term, the strategy is not without risk. First, short term rates in general may rise in the future and then when the bond issues are refinanced borrowing costs will be higher. This is quite possible since the current low short term rates reflect... (Fairfield Minuteman, CT)
Publicis Groupe Services: Half-Year 2009 Results Jul 23, 2009
"As expected, the global recession has made things worse for an advertising industry already faced with declining business. The falloff in advertising spending worldwide is estimated at between 13% and 15% for the first half of the year. Even so, we did better than the market in the second quarter, with digital, healthcare, and emerging markets driving our revenue. We ended the first half with organic growth down 6.6% (down 5.4% excluding the impact of GM), a result that clearly reflects our... (PR Newswire)
AP: White House Seeks Tighter Rules for Credit Raters Jul 23, 2009
The agencies are crucial financial gatekeepers, issuing ratings on the creditworthiness of public companies and securities. Their grades can be key factors in determining a company's ability to raise or borrow money, and at what cost, and which securities will be purchased by banks, mutual funds, state pension funds or local governments. (Missourian Publishing, MO)
Tighter credit rating rules sought Jul 22, 2009
The agencies are crucial financial gatekeepers, issuing ratings on the creditworthiness of public companies and securities. Their grades can be key factors in determining a company s ability to raise or borrow money, and at what cost, and which securities will be purchased by banks, mutual funds, state pension funds, or local governments. (Boston Globe)
* G8 creates big chance for small African farmers Jul 22, 2009
Farmers will be able to buy inputs, either out of their own cash, or by borrowing against their improved creditworthiness. A consensus has now been reached on the need to assist smallholders, but obstacles remain. (Taipei Times, Taiwan -- World Business)
ServisFirst Bancshares, Inc. Reports Second Quarter 2009 Earnings Jul 21, 2009
Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements including: general economic conditions, especially in the credit markets and in the Southeast; the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes... (PR Newswire)
California Lawmakers, Governor Reschedule Budget Talks as Progress Noted Jul 20, 2009
The rating cuts by Fitch and Moodys put Californias creditworthiness where it was in December 2003, when Schwarzenegger tightened the states fiscal bind by honoring a campaign pledge to slash a car tax. By comparison, before the end of the Cold War, which battered military contractors in California, the state had the top credit grade from all three bond rating companies. (Bloomberg -- US)
Banking regulator should regulate credit cards Jul 20, 2009
Improved regulation of the credit card market requires China's banking regulator to press commercial lenders to carefully assess creditworthiness before issuing cards while encouraging innovations to improve consumers' advantages. The number of credit cards in China has almost tripled in the last three years to 150 million by the end of March this year because of both aggressive promotion and more adaptation to credit consumption. (Xinhuanet, China)
Watch for changes in terms as credit-card rules take effect Jul 19, 2009
But Daniels said card issuers must be able to price their product according to a consumer's creditworthiness. "There's no one-size-fits-all, no uniform plain-vanilla consumer, so when credit is issued, companies in the optimal situation should be able to determine creditworthiness based on individuals' risk profiles," Daniels said. (Republican-American)
Fiscal reform needed Jul 19, 2009
"Certainly, there is a risk that fiscal and other reforms may be more diluted, which in turn, could pressure sovereign creditworthiness given Mexico's weakening fiscal fundamentals and deteriorating economic environment.". Obama supports new long-term care benefit. (Fresno Bee -- Opinion)
Citigroup profit disappoints as loan losses mount Jul 18, 2009
5 billion gain from the rule in the first quarter, when concerns about the bank's creditworthiness led to declines in the value of the liabilities. Investor confidence in Citigroup rose during the second quarter, as measured by prices for its bonds, leading to an increase in the liability values. (Sydney Morning Herald -- Business)
Debit cards gain appeal as payment channel Jul 18, 2009
Although debit cards may be popular among students and young graduates who have yet to establish their creditworthiness records, Chua says he does not foresee its growth surpassing that of credit cards, at least not in the near future. In case of emergency, credit cards may serve as a saviour when banks are not accessible in odd hours, for example, to pay a substantial medical fee at midnight. (The Star Online, Malaysia -- Business)
Historic momentfor Asian finance Jul 18, 2009
Chinese apprehension over US creditworthiness prompted a visit by to Beijing by US Treasury Secretary Timothy Geithner in June, where the message was that Washington is committed to the repayment of its debt, has a responsible approach to the economy, and will maintain the sovereign ratings of AAA (critically important for bondholders). The new financial landscape is more suited for Asian financial institutions. (Asia Times Online)
Summers says U.S. economy back from abyss Jul 18, 2009
"Containing this downturn and preventing the kind of debt dynamics you saw in Japan or you saw during the Depression in the United States has to be the first priority of anyone concerned with national creditworthiness or any intellectually honest deficit hawk," he added. Special Report. (Xinhuanet, China)
South Africa: A-Grade Doubts [editorial] Jul 17, 2009
Johannesburg WHEN international credit rating agencies rate a country's creditworthiness, they give it two rankings: one, in foreign currency, applies to any debt the country issues on international markets, in dollars, euro or yen ... The change, Moody's sovereign analyst Kristin Lindow assures us, was a "net negative": the agency's assessment of the fundamental creditworthiness of any government is reflected in its local, not foreign currency rating. (allAfrica.com)
