Tuesday, June 30, 2015

Greece pays rates to the IMF not back – SPIEGEL ONLINE

 The history of rating agencies goes back to the 19th century, when the US rail network was expanding across the continent. The required credits that could not shoulder alone the banks. Industrial companies began to issue bonds in order to raise funds. Today three agencies dominate the market: Standard & amp; Poor’s, Moody’s and Fitch

Standard & amp. Poor’s (S & P): Henry Varnum Poor published 1868 “Manual of the Railroads of the United States,” in which investors were given information about the railway companies. 1941 fused the Poor’s Publishing Company and the Standard Statistics Company to rating agency Standard & amp; Poor’s. The rating ranges from AAA (“triple A”, excellent credit, virtually no risk of default) than BBB (satisfactory) to D (in default of payment, no credit).
Moody’s: John Moody founded in 1909, Moody’s Investors Service, which is recognized by the US Securities and Exchange Commission since 1975. The ratings range from Aaa to Baa1 on C
Fitch Ratings. In 1924 in New York from the Fitch Publishing Company of John Fitch, the company Fitch Ratings. All three companies have their headquarters in New York, Fitch Ratings also in London; They have offices all over the world. The rating ranges from AAA to D.
Rating Agencies assess the creditworthiness of companies, banks and States and awarded to different credit ratings. It released figures are also channeled as industry estimates or judgment of management.
The worse they assess the creditworthiness of a market participant, the more expensive and more difficult it is for them to get some money. Refinancing costs are rising, at worst draw their capital from financial backers. (: P Ba1, S & amp: BB +, Fitch: BB + Moody’s) are considered “junk” in the credit rating be based not only banks, but also for example institutional investors

Highly speculative bonds.. If a bond classified as speculative, for example, central banks need to sell them.

 Critics, it often remains unclear how much of the credit ratings (ratings) is mathematics and which opinion. In the financial crisis, rating agencies have been pilloried: Because they extolling junk securities as safe investment, you complicit in the crisis was given



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