Standard & Poor’s
Scor spreads widen 350bp after firm reveals €38m credit derivatives losses
The cost of senior debt protection on Scor ballooned to 850/1,000 basis points over Libor today, after the French reinsurer revealed, yesterday that it would make a net loss of €250 million this year, following major losses in credit derivatives and…
Defaults by EU companies outpace global and US counterparts, says S&P
The default rate in the European Union (EU) continued to outpace its global and US counterparts during the third quarter, according to rating agency Standard & Poor's (S&P). A total of 20 rated EU entities have defaulted on rated debt worth $8.7 billion…
Global defaults fall for first time in two years, says S&P
Global default rates fell in the third quarter for the first time in two years, signalling that the flood of corporate defaults that began in the late 1990s has peaked, according to ratings agency Standard & Poor’s.
ABB protection no longer available on a client-only basis
Credit protection on the debt of ABB is no longer available even on a client-only basis, major dealers said today.
Cost of protection for Sears surges following poor earnings
The cost of credit protection for US retailer and financial services group Sears sharply widened 150 basis points to 400/480bp, following a negative earnings statement yesterday. Worsening problems with credit-card debt prompted Sears to report a…
CME to list futures on S&P SmallCap 600
The Chicago Mercantile Exchange (CME) will start to trade futures contracts on rating agency Standard & Poor’s (S&P) SmallCap 600 stock index from November 11.
Credit risk systems: Getting the risk right
The requirements of the new Basel Accord are prompting some banks in Asia to begin implementing sophisticated credit systems, but there are still some obstacles to overcome.
Commerzbank credit protection costs double in a week
The cost of credit protection for Commerzbank has nearly doubled over the last week. The widening follows rumours of large credit derivatives trading losses at the German bank and a cut in its long-term credit rating from A to A- yesterday from Standard …
Close-up on market risk capital
Jack Kennedy outlines rating agency Standard & Poor’s new approach for analysing the credit quality of US energy trading firms
Weak equity markets continue to fuel widening in European credit spreads
Equity weakness continued to dominate the direction of European credit default swaps, pushing the cost of protection wider for volatile insurers and telecoms.
JP Morgan says downgrade will impact derivatives business
JP Morgan Chase’s credit rating agency downgrades yesterday will affect its derivatives business, the bank told RiskNews at the end of the London trading day today.
JP Morgan default swaps hit as bank receives double-downgrade
The cost of credit protection on JP Morgan Chase debt has surged more than 25 basis points following a profit warning from the US investment bank and downgrades from rating agencies Fitch Ratings and Standard & Poor's.
Rabobank defends its credit rating following downgrade
Dutch financial services co-operative Rabobank has defended its credit position following a one-notch downgrade by rating agency Fitch Ibca.
Rating agencies divided over Aquila’s credit-worthiness
The two major rating agencies are divided over their assessment of troubled energy company Aquila, with Moody’s cutting its rating to junk and Standard & Poor’s (S&P) maintaining its investment-grade standing.
September 11 accelerated energy sector woes, says S&P
Last year’s September 11 terrorists attacks that resulted in the destruction of New York's World Trade Center may have accelerated the onset of the US energy sector’s problems, according to a new report by Standard & Poor’s.
Australian capital/asset ratios consistent with credit ratings, says S&P
MELBOURNE – The capital to asset ratios of the four major Australian banks, as measured by credit rating agency Standard and Poor’s own approaches, are consistent with the banks’ double A ratings, S&P said today.
Grim outlook for energy merchants, says S&P
The future of many US energy merchants hinges on their ability to maintain adequate levels of liquidity over the next several months, according to Standard & Poor’s. Although some energy firms with trading operations are making progress on asset sales,…
EU default rates hit record high in Q2, says S&P
Rating agency Standard and Poor’s (S&P) said speculative-grade default rates in the European Union (EU) soared to a record high in the second quarter. The EU recorded a default rate of 5.11% in the second quarter, surpassing both the global and US…
Beyond the pail
Australia’s regulator has hinted that it may work outside of the Basel Accord to set its own risk weightings for residential mortgages if adjustments aren’t made, writes Nick Sawyer.
S&P acquires Default Filter from IQ Financial
Standard & Poor’s (S&P) has acquired the Default Filter credit risk management assets from risk management software company IQ Financial Systems.
Credit quality improved but spreads widen in Q2, says S&P
Rating agency Standard and Poor’s (S&P) said global credit quality continued to improve in the second quarter of 2002. The global downgrade-to-upgrade ratio, which was 7:0 in the final quarter of 2001 was 5:3 in the first quarter of 2002 and 3:1 for the…
S&P rates hedge fund of funds CDO
Ratings agency Standard & Poor’s (S&P) said it has rated a hedge fund-backed collateralised debt obligation (CDO) issued last week by Diversified Strategies, a special-purpose vehicle. Cayman Islands-based Investcorp Management Services is the investment…
Credit Markets Update: Vivendi protection costs surge
The cost of credit protection on French media company Vivendi Universal’s debt ballooned 500 basis points yesterday, with five-year bids hitting 1,200bp following downgrades from rating agencies Moody’s and Standard & Poor’s and the resignation of chief…
S&P: compromises could lead to “meaningless” Basel II
Global banking regulators must take great care to ensure the Basel II capital Accord isn’t overly weakened or even rendered meaningless by compromises over conflicting national interests, credit rating agency Standard & Poor’s (S&P) said in a report…