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#long-term foreign currency issuer default rating
thejewishlink · 2 years
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Fitch Maintains Israel’s A+ Rating with a Stable Outlook
Fitch Maintains Israel’s A+ Rating with a Stable Outlook
By TPS • 1 August, 2022 Jerusalem, 1 August, 2022 (TPS) — Fitch Ratings affirmed on Monday Israel’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook. The international credit rating company emphasized the strong elements of Israel’s economy, including a diverse and solid economy, strong external accounts, and a strong institutional structure. According to the…
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Fitch Revises Brazil's Outlook to Stable from Negative; Affirms at 'BB-'
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Fitch Ratings has affirmed Brazil's Long-Term (LT) Foreign Currency (FC) Issuer Default Rating (IDR) at 'BB-' and revised the Rating Outlook to Stable from Negative.
The revision of Brazil's rating Outlook to Stable from Negative reflects the better-than-expected evolution of public finances amid successive shocks in recent years since we assigned the Negative Outlook in May 2020. Last year, Brazil recorded its first primary fiscal surplus since 2013, highlighting revenue outperformance and the authorities' commitment to withdraw stimulus implemented during the pandemic.
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therealtorasia · 27 days
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Fitch Affirms Iceland at ‘A’; Outlook Stable
Fitch Ratings has affirmed Iceland’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A’ with a Stable Outlook. Iceland’s ‘A’ rating is underpinned by its very high income per capita and governance indicators that are more consistent with those of ‘AAA’ and ‘AA’ rated sovereigns. The country has built sizeable buffers, which help mitigate its vulnerability to external shocks and balance…
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blogynews · 7 months
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Unveiled: Fitch's Unexpected Upgrade on Kerala's Outlook to 'Stable' - What's Behind the Change?
Fitch Ratings has upgraded Kerala’s outlook to ‘stable’ from ‘negative’ while maintaining a ‘BB’ rating for the State’s long-term foreign and local currency issuer default ratings (IDR). The revised outlook reflects positive developments following the COVID-19 pandemic, according to the ratings published on August 25. The report also highlights the State’s economic expansion as a factor that will…
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blogynewz · 7 months
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Unveiled: Fitch's Unexpected Upgrade on Kerala's Outlook to 'Stable' - What's Behind the Change?
Fitch Ratings has upgraded Kerala’s outlook to ‘stable’ from ‘negative’ while maintaining a ‘BB’ rating for the State’s long-term foreign and local currency issuer default ratings (IDR). The revised outlook reflects positive developments following the COVID-19 pandemic, according to the ratings published on August 25. The report also highlights the State’s economic expansion as a factor that will…
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blogynewsz · 7 months
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Unveiled: Fitch's Unexpected Upgrade on Kerala's Outlook to 'Stable' - What's Behind the Change?
Fitch Ratings has upgraded Kerala’s outlook to ‘stable’ from ‘negative’ while maintaining a ‘BB’ rating for the State’s long-term foreign and local currency issuer default ratings (IDR). The revised outlook reflects positive developments following the COVID-19 pandemic, according to the ratings published on August 25. The report also highlights the State’s economic expansion as a factor that will…
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thesecrettimes · 8 months
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Personal Finance Expert Says US Rating Downgrade Likely to Embolden BRICS Currency Supporters
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Debt Ceiling Standoffs and the Impact on the U.S. Credit Rating According to Riley Adams, a personal finance expert and the CEO of Young and the Invested, the credit rating agency Fitch’s recent downgrade of the United States to AA+ will likely “embolden anyone in the BRICS that supports the creation of a new currency.” Adams, also a certified public accountant (CPA), told Bitcoin.com News that Fitch’s report on the country also “relays legitimate concerns about how the budgeting process has devolved in the U.S.” As reported by Bitcoin.com News, Fitch has tied its downgrade of the U.S. long-term foreign-currency issuer default rating from AAA to AA+ to the “repeated debt-limit political standoffs” and the last-minute resolutions which have in turn “erode confidence in fiscal management.” Meanwhile, the personal finance expert has posited that many of those opposed to the U.S. dollar’s reserve currency status will now attempt to use news of Fitch’s downgrade to further rally support for a BRICS currency. “At the very least, it could trigger a short-term shift in sentiment that BRICS-currency supporters could use to get some traction on their ideas,” Adams, a former senior financial analyst for Google, explained. BRICS Currency and Geopolitical Issues In the past few years, critics of the U.S.-dominated financial system have highlighted how the country’s divided legislature has played a part in eroding confidence in America’s ability to meet its obligations on time. Also, before the latest debt ceiling agreement was struck, senior U.S. officials including Treasury Secretary Janet Yellen warned that the U.S. Congress’ constant failure to raise the debt limit on time posed a serious threat to the dollar’s dominance. However, as has been reported by Bitcoin.com News, the same U.S. officials appear less concerned about the possibility of the Chinese yuan or the much-vaunted BRICS currency toppling the greenback. While American leaders have flaunted the dollar’s unmatched backing by United States’ “deep, liquid and open financial markets” when dismissing the prospects of rival currencies, Adams sees “geopolitical issues” as one of the reasons why people ought to be less sanguine about the BRICS currency’s chances of success. To illustrate, the personal finance expert pointed to a report in which the governor of the South African central bank reveals that a common currency would require a banking union, a fiscal union, and macroeconomic convergence for it to succeed. According to Adams, attempting to achieve this takes “many steps farther than simply trying to decouple from the dollar individually, and much more unlikely to happen.” Adams said the fact that proponents of a BRICS currency are seemingly trying to walk back earlier comments about the launch suggests the alternative reserve currency will not start circulating in August as some proponents had predicted. What are your thoughts on this story? Let us know what you think in the comments section below. Read the full article
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dertaglichedan · 8 months
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Fitch Ratings - London - 01 Aug 2023: Fitch Ratings has downgraded the United States of America's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'AA+' from 'AAA'. The Rating Watch Negative was removed and a Stable Outlook assigned. The Country Ceiling has been affirmed at 'AAA'.
A full list of rating actions is at the end of this rating action commentary.
KEY RATING DRIVERS
Ratings Downgrade: The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to 'AA' and 'AAA' rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.
Erosion of Governance: In Fitch's view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025. The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management. In addition, the government lacks a medium-term fiscal framework, unlike most peers, and has a complex budgeting process. These factors, along with several economic shocks as well as tax cuts and new spending initiatives, have contributed to successive debt increases over the last decade. Additionally, there has been only limited progress in tackling medium-term challenges related to rising social security and Medicare costs due to an aging population.
Rising General Government Deficits: We expect the general government (GG) deficit to rise to 6.3% of GDP in 2023, from 3.7% in 2022, reflecting cyclically weaker federal revenues, new spending initiatives and a higher interest burden. Additionally, state and local governments are expected to run an overall deficit of 0.6% of GDP this year after running a small surplus of 0.2% of GDP in 2022. Cuts to non-defense discretionary spending (15% of total federal spending) as agreed in the Fiscal Responsibility Act offer only a modest improvement to the medium-term fiscal outlook, with cumulative savings of USD1.5 trillion (3.9% of GDP) by 2033 according to the Congressional Budget Office. The near-term impact of the Act is estimated at USD70 billion (0.3% of GDP) in 2024 and USD112 billion (0.4% of GDP) in 2025. Fitch does not expect any further substantive fiscal consolidation measures ahead of the November 2024 elections.
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massispost · 8 months
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New Post has been published on https://massispost.com/2023/07/fitch-upgrades-armenias-rating-to-bb-outlook-is-stable/
Fitch Upgrades Armenia's Rating to 'BB-'. Outlook is Stable
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NEW YORK — Fitch Ratings has upgraded Armenia’s Long-Term Foreign-Currency Issuer Default Rating…
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sutrala · 10 months
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Fitch put the United States’ AAA long-term foreign-currency issuer default rating on negative watch Wednesday evening, pointing to brinksmanship over the debt ceiling. “The Rating Watch Negative reflects increased political partisanship that is hindering reaching a solution...
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jsbmarketresearch01 · 11 months
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Fitch Global Agency Marks India with BBB for Long-Term Foreign Currency Issuer Default Rating
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On Tuesday, Fitch Ratings said that India’s sovereign rating shows a balanced outlook for the nation. It has thus, fixed the nation at BBB rating for Long Term Foreign Currency Issuer Default Rating. The agency stated that India has the potential for strong growth and that is its primary supporting factor, which resulted in the rating currently. It also conveyed that the rating for India reflects the prospect of a robust growth outlook and strengths in comparison to resilient external finances and peers.
These have helped the nation to navigate over the last year, the large external shocks. But India is also weak on the front of public finances. This is because of debt relative to peers, high deficits, and lagging structural indicators. And when we talk about indications, it includes that from the GDP per capita and World Bank governance. The agency has provided credit rating BBB to India. While the nation is perking its efforts to garner investments, a few setbacks have come along the way.
But since August 2006, this is the lowest grade rating for investment. Globally, Fitch Ratings has marked India as one of the fastest-growing sovereigns. This means that the nation though running low on credit rating still has chances to make a comeback and recover from the losses. The growth rate is said to be at 6% in the present fiscal year. The period ending is considered as March 2024. The rating is also supported by prospects of strong and stable investments.
The global rating agency also said that because of high-interest rates, rising inflation, reduced demand worldwide, and pent-up demand because of the fading pandemic, the growth will slow down from the estimate of 7% for FY23. And then by FY25, the same will rebound to 6.7%. But things may look in turn positive for India soon as the country recuperates from the financial low.
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Fitch keeps Brazil's rating unchanged, with a stable outlook
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Fitch Ratings has reaffirmed Brazil’s long-term foreign-currency issuer default rating at BB, still in junk territory, with a stable outlook.
While praising the country’s large and diversified economy, high per capita income, and a large cash cushion, Fitch highlights multiple uncertainties regarding the country’s ability to bring public accounts into the black.
“Brazil’s fiscal position is on track for a substantial deterioration in 2023, driven by sluggish revenues, large spending increases mostly related to the expansion of social benefits and settlement of the remaining stock of court-ordered repayments [IOU bonds known as precatórios],” Fitch noted in a statement.
Moreover, Fitch said the effectiveness of the Finance Ministry’s fiscal framework is still to be tested. The government has a zero-deficit target for 2024, with a tolerance band of ±0.25 percent of GDP.
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Ghana Misses US$40.6 mln Coupon Payment On Its US$1 bln 2026 Eurobond; Fitch Lowers Ghana To 'Restricted Default'
Ratings agency Fitch on Tuesday downgraded Ghana’s long-term foreign-currency issuer default rating to ‘restricted default’, after the country missed the grace period to make a coupon payment on one of its Eurobonds. Ghana on Friday missed making the $40.6 million coupon payment on its $1 billion 2026 Eurobond, as part of the suspension of payments on selected external debt that the government…
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best2daynews · 1 year
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Fitch Ratings downgrades Pakistan to CCC minus
The logo of Fitch Ratings. — AFP/File  Fitch Ratings Tuesday announced downgrading Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to “CCC-” from “CCC+”. The downgrade reflects further sharp deterioration in external liquidity and funding conditions and the decline of foreign exchange reserves to critically low levels. Falling reserves reflect large, albeit declining, current…
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thesecrettimes · 8 months
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White House, Yellen Slam Fitch’s US Rating Downgrade — Biden Officials Call It ‘Bizarre and Baseless’
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Fitch Downgrades US Rating Fitch Ratings, one of the three largest credit rating agencies in the U.S., downgraded the United States’ long-term foreign-currency issuer default rating from AAA to AA+ on Tuesday. The rating agency explained: The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years. It also reflects “a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions,” Fitch added. “The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” the rating agency detailed. Moreover, Fitch explained that in its view, “there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025.” In addition, Fitch described: We expect the general government (GG) deficit to rise to 6.3% of GDP in 2023, from 3.7% in 2022, reflecting cyclically weaker federal revenues, new spending initiatives and a higher interest burden. The rating agency placed the country’s credit rating on negative watch in May, citing the debt ceiling fight in Washington. Despite the U.S. successfully avoiding default on its debt obligations in June, Fitch maintained the negative watch. However, in its announcement on Tuesday, Fitch clarified that the negative watch on the U.S. has been removed, and a “stable outlook” has been assigned. White House, Biden Officials, and Yellen Disagree Following the rating downgrade, officials from the Biden administration told journalists that the governance issues highlighted by Fitch occurred during former President Donald Trump’s administration. Noting that Fitch had maintained a AAA rating during that period, a senior Biden official said: “This is a bizarre and baseless decision for Fitch to make now … It simply defies common sense to take this downgrade as a result of what was really a mess caused by the last administration and reckless actions by congressional Republicans.” The White House also released a statement following Fitch’s decision. “We strongly disagree with this decision,” White House Press Secretary Karine Jean-Pierre said. “The ratings model used by Fitch declined under President Trump and then improved under President Biden, and it defies reality to downgrade the United States at a moment when President Biden has delivered the strongest recovery of any major economy in the world.” Treasury Secretary Janet Yellen also released a statement regarding the downgrade. She stated: I strongly disagree with Fitch Ratings’ decision. The change by Fitch Ratings announced today is arbitrary and based on outdated data. “Fitch’s quantitative ratings model declined markedly between 2018 and 2020 — and yet Fitch is announcing its change now, despite the progress that we see in many of the indicators that Fitch relies on for its decision,” Yellen explained. “Many of these measures, including those related to governance, have shown improvement over the course of this administration, with the passage of bipartisan legislation to address the debt limit, invest in infrastructure, and make other investments in America’s competitiveness.” What do you think about Fitch downgrading the U.S. rating? Let us know in the comments section below. Read the full article
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urbtnews · 8 months
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Fitch Ratings Downgrades US Credit Rating
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Fitch Ratings Downgrades US Credit Rating Biden Shifts the Blame. Fitch Ratings has downgraded the United States' Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'AA+' from 'AAA'. The decision by Fitch comes amid concerns over the country's fiscal deterioration, high and growing debt burden, and the erosion of governance relative to 'AA' and 'AAA' rated peers. This blog post will examine the key rating drivers behind this recent downgrade of the United States' credit rating.  DOWNLOAD THE URBT NEWS APP Fitch Ratings has cited multiple key rating drivers behind this downgrade. Firstly, the expected fiscal deterioration over the next three years is causing major concerns. The government lacks a medium-term fiscal framework and has a complex budgeting process. Most of its peers have a medium-term fiscal framework in place that helps to monitor and adjust fiscal policy over the medium term. However, the lack of this framework in the United States has contributed to successive debt increases over the last decade. Fitch Ratings Downgrades US Credit Rating as Biden Shifts the Blame Secondly, the country's high and growing general government debt burden is also a major concern. The debt is expected to increase even further due to the continued economic shock from Covid-19. Additionally, tax cuts and new spending initiatives have contributed to successive debt increases over the last decade. The credit rating downgrade means that business may have less access to capital. Without capital layoffs and recession could be on the horizon. The credit downgrade is not mitigated by revenue-raising measures alone. The issues are the Biden administration has yet to outline comprehensive plans to address its debt burden. Thirdly, Fitch Ratings has noted the erosion of governance relative to 'AA' and 'AAA' rated peers over the last two decades. There has been a lack of standards of governance, including on fiscal and debt matters. The government has repeatedly faced debt limit standoffs and last-minute resolutions, eroding confidence in fiscal management. Furthermore, the government lacks a medium-term fiscal framework, unlike most peers, and has a complex budgeting process. Fourthly, the country's economic shocks as well as tax cuts and new spending initiatives have contributed to successive debt increases. Although the United States has a large and diverse economy, with a high-income level and robust institutions, these shocks have contributed to the government's debt burden. Why wont President Biden the blame for the US Credit Downgrade. Lastly, Fitch Ratings has assigned a Stable Outlook despite the downgrade, reflecting the ongoing resilience and diversification of the United States' economy. However, this outlook rests on the assumption that the country will implement a credible fiscal consolidation plan over the medium term that allows for a stabilization of its fiscal trajectory and a reversal of its debt burden. The downgrade by Fitch Ratings of the United States' Long-Term Foreign-Currency Issuer Default Rating has come as a shock to many. The decision was based on the expected fiscal deterioration over the next three years. The high and growing general government debt burden, and the erosion of governance. These issues are relative to the downgrade from 'AA' to 'AAA' rated peers over the last two decades. The United States government needs to outline a comprehensive fiscal consolidation plan over the medium term that allows for the stabilization of its fiscal trajectory and a reversal of its debt burden. Future economic shocks and the ongoing Covid-19 pandemic will also need to be taken into consideration when addressing these issues. Read the full article
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