Tag Archive | ratings

My Debt Ratings vol.2

It’s time to renew my debt ratings again. I changed China’s status from A to B because signs have appeared that my fears of future banking problems may become true. Further, I added Brazil and Japan. The latter was somehow hard to categorize. I decided that Japan’s debt problems are huge but not unsolvable yet. […]

Das Schuldenimperium schlägt zurück

Europas Banken sind nun erstmals mehr pleitegefährdet als amerikanische Banken (siehe Artikel). Die nicht gelöste Schuldenkrise droht, Europa in eine weitere Rezession zu stürzen (siehe weiterer Artikel). Aber darauf habe ich ja schonmal hingewiesen (“Ein Schrecken ohne Ende”).

My Debt Ratings

Rating agencies are often too slow to change their outlook for the debt sustainability of governments. For instance, Greece was never really on a sustainable path, yet they gave them A-ratings for a very long time. In my opinion, the jump from AAA to BBB happens to fast and therefore A/AA/AAA-ratings have little predictive content. […]