Comments on: S & P affirms U.S. AAA/A-1+ credit rating http://www.savings-bond-advisor.com/s-p-affirms-us-aaaa-1-credit-rating/ Wed, 08 Feb 2012 16:58:00 +0000 http://wordpress.org/?v=2.0.4 by: Nik http://www.savings-bond-advisor.com/s-p-affirms-us-aaaa-1-credit-rating/#comment-28168 Wed, 24 Sep 2008 17:50:44 +0000 http://www.savings-bond-advisor.com/s-p-affirms-us-aaaa-1-credit-rating/#comment-28168 Ha ha ha ha ha !!! As they say in the plumbing trade: "Smoke goes up, s**t goes down, payday's Friday." Ha ha ha ha ha !!!
As they say in the plumbing trade: "Smoke goes up, s**t goes down, payday's Friday."

]]> by: Tom Adams http://www.savings-bond-advisor.com/s-p-affirms-us-aaaa-1-credit-rating/#comment-27363 Wed, 10 Sep 2008 12:59:58 +0000 http://www.savings-bond-advisor.com/s-p-affirms-us-aaaa-1-credit-rating/#comment-27363 Dan - S & P has been particularly incompetent during this whole financial crisis. The most recent example is this Reuters story, <a href="http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSWNA272420080907" rel="nofollow">S&P slashes Fannie, Freddie preferred stock to junk</a>, which didn't come out until Sunday <i><b>after</b></i> the government take over. These are the people who get paid for early warnings! Do you think their customers got their money's worth? (Well, since they are paid by the companies they're rating, not by investors, yes, their customers got their money's worth.) But, for what it's worth, on Sunday they also issued this release on the impact of the take over on the U.S. credit rating: <blockquote> <h4>S&P: United States Of America Sovereign Ratings Unaffected By GSEs' Conservatorship</h4> NEW YORK Sept. 7, 2008--Standard & Poor's Ratings Services said today that neither its 'AAA/A-1+' sovereign credit rating on the United States of America, nor its stable outlook on these ratings is affected by the U.S. Treasury's decision, announced today, to put Fannie Mae and Freddie Mac into conservatorship (see "Fannie Mae And Freddie Mac 'AAA/A-1+' Unsecured Ratings Affirmed; Preferred Stock Rating Cut," published Sept. 7, 2008). In our view, the U.S. government's credit quality continues to be upheld by its high-income, highly diversified, and exceptionally flexible economy, relative to those of other 'AAA' rated sovereigns, together with the U.S. public sector's fiscal flexibility and the unique advantages coming from the dollar's preeminent place among currencies. </blockquote> Tom Adams Dan - S & P has been particularly incompetent during this whole financial crisis. The most recent example is this Reuters story, S&P slashes Fannie, Freddie preferred stock to junk, which didn't come out until Sunday after the government take over.

These are the people who get paid for early warnings! Do you think their customers got their money's worth? (Well, since they are paid by the companies they're rating, not by investors, yes, their customers got their money's worth.)

But, for what it's worth, on Sunday they also issued this release on the impact of the take over on the U.S. credit rating:

S&P: United States Of America Sovereign Ratings Unaffected By GSEs' Conservatorship

NEW YORK Sept. 7, 2008–Standard & Poor's Ratings Services said today that neither its 'AAA/A-1+' sovereign credit rating on the United States of America, nor its stable outlook on these ratings is affected by the U.S. Treasury's decision, announced today, to put Fannie Mae and Freddie Mac into conservatorship (see "Fannie Mae And Freddie Mac 'AAA/A-1+' Unsecured Ratings Affirmed; Preferred Stock Rating Cut," published Sept. 7, 2008). In our view, the U.S. government's credit quality continues to be upheld by its high-income, highly diversified, and exceptionally flexible economy, relative to those of other 'AAA' rated sovereigns, together with the U.S. public sector's fiscal flexibility and the unique advantages coming from the dollar's preeminent place among currencies.

Tom Adams

]]> by: Dan http://www.savings-bond-advisor.com/s-p-affirms-us-aaaa-1-credit-rating/#comment-27333 Tue, 09 Sep 2008 20:39:42 +0000 http://www.savings-bond-advisor.com/s-p-affirms-us-aaaa-1-credit-rating/#comment-27333 "We do not expect direct assistance to GSEs, including Fannie Mae and Freddie Mac, to alter our rating or stable outlook." Hmm, "direct assistance" does not sound like "takeover." I wonder if the folks at S&P were surprised at the federal decision a week later? "We do not expect direct assistance to GSEs, including Fannie Mae and Freddie Mac, to alter our rating or stable outlook."

Hmm, "direct assistance" does not sound like "takeover." I wonder if the folks at S&P were surprised at the federal decision a week later?

]]>