Fitch downgrades credit of Greek banking sector

By Peter Boockvar - February 23rd, 2010, 9:41AM

Following the obvious news in Greece over the past few months, Fitch just downgraded the credit ratings of Greece’s 4 largest banks to BBB from BBB+. “The Rating actions reflect Fitch’s view that the banks already weakening asset quality and profitability will come under further pressure due to anticipated considerable adjustments in Greece. In particular, Fitch believes the required fiscal tightening that needs to be made by the Greek government will have a significant effect on the real economy, affecting loan demand and putting additional pressure on asset quality.”

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Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “Fitch downgrades credit of Greek banking sector”

ZackAttack Says:
February 23rd, 2010 at 11:33 am
Good thing we can always count on the rating agencies to stay far out in front of the curve to help prevent us from being blindsided by problems no one could possibly have foreseen otherwise.
David Merkel Says:
February 23rd, 2010 at 1:49 pm
Rating agencies exist to be scapegoats. When they are proactive (yes there have been eras where they have been proactive) the bond buyers scream — “Ratings are supposed to be good over a full market cycle!” When they are reactive, which is most of the time, they get accused of being coincident indicators.

They can’t win, which is why institutional investors ignore the ratings, aside from the capital charges that they force, and instead, read what the rating agency analysts write. The true opinion is in the writing, not the rating.