Monday, August 8, 2011

S&P Downgrade Massacre of USA Government Agencies! (Video) *FDIC, NCUA, FHLB, FCB, FNMA, FHLMC credit ratings cut*

# # #




"It ain't over til it's over" (Yogi Berra)


USA Sovereign Credit Rating Overview Standard and Poor's lowered the credit rating of the United States of America from AAA to AA+, with a long-term negative outlook, on August 5, 2011. The negative outlook indicates the rating could be lowered again within the next two years. Fitch Ratings continues the USA at AAA, with a stable outlook, but this is currently under review with a report due by the end of August. Moody's Investor Service reaffirmed the USA at AAA, but with a negative outlook, on August 2, 2011. The USA has never before had less than a AAA credit rating.

S&P Downgrade Massacre Standard and Poor's lowered the credit ratings of a variety of United States agencies and government sponsored entities, with long-term negative outlooks, on August 8, 2011. S&P refers to these institutions as "government-related entities" (GREs) and have a "very high likelihood of receiving support from the government (U.S. federal), if needed". These ratings were downgraded from AAA to AA+ or AA-, to correspond with the USA sovereign credit rating. The negative outlook indicates the rating could be lowered again within the next two years. The USA guarantees the debt of plus provides financial assistance, if necessary, to these institutions. Therefore they were correspondingly downgraded. These were:
FHLB AA+: Federal Home Loan Banks, 10 of the 12 banks in the system, including senior debt of the overall FHLB System, Chicago and Seattle FHLBs already rated AA+
● FFCB AA+: Federal Farm Credit Bank, senior debt of the overall FCB System, the 4 individual farm member banks not affected and continue stand-alone as "a+"
● FNMA AA+, "Fannie Mae": Federal National Mortgage Association, already in conservatorship, relies on U.S. Treasury quarterly capital injections, reaffirmed "A" subordinated debt, "C" preferred stock ratings, and "A-1+" short-term credit issue ratings
● FHLMC AA+, "Freddie Mac": Federal Home Loan Mortgage Corporation, already in conservatorship, relies on U.S. Treasury quarterly capital injections, reaffirmed "A" subordinated debt, "C" preferred stock ratings, and "A-1+" short-term credit issue ratings
FDIC AA-: Federal Deposit Insurance Corporation, 126 debt issues by the Temporary Liquidity Guarantee Program
● NCUA AA-: National Credit Union Association, 4 debt issues by the Temporary Corporate Credit Union Guarantee Program
Other AA+: Depository Trust Company, National Securities Clearing Corporation, Fixed Income Clearing Corporation, and Options Clearing Corporation.

S&P Statement, August 8, 2011: Ratings On Select GREs And FDIC- And NCUA-Guaranteed Debt Lowered After Sovereign Downgrade:
● On Aug. 5, 2011, Standard & Poor's lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'.
● As a result, we have also lowered the long-term issuer credit ratings and related issue ratings on select government-related entities (GREs) to 'AA+' from 'AAA'.
● The issuer credit ratings of these financial institutions and their relevant debt issues are removed from CreditWatch, where they were placed July 15, 2011.
● 
The outlooks for all 12 FHLBs, and the issue level ratings for Fannie Mae, Freddie Mac, the FHLB System, and the Farm Credit System are negative.

S&P Downgrades Fannie, Freddie Credit Ratings Markets Hub: What Should Investors Do? SmartMoney's Jack Hough outlines how investors should look at the long-term economic picture for the U.S. following the downgrade, as well as the impact on the housing market.





Charts & Analysis

USA and Global economic charts
Apple (AAPL) financial performance and stock charts
Google (GOOG) financial performance and stock charts
Largest USA tech companies
Microsoft (MSFT) financial performance charts
Intel (INTC) financial performance charts
VMware (VMW) financial performance charts
SalesForce.com (CRM) financial performance charts
Rackspace (RAX) financial performance charts
Cisco (CSCO) financial performance charts
Oracle (ORCL) financial performance charts
HP (HPQ) financial performance charts
USA failed and problem banks
Largest USA banks
Federal Reserve statistical releases
JPMorgan Chase & Co. (JPM) financial performance charts
Citigroup (C) financial performance charts
Goldman Sachs (GS) financial performance charts
Wells Fargo (WFC) financial performance charts
Bank of America (BAC) financial performance charts
Morgan Stanley (MS) financial performance charts
S&P 500 (SPX) charts and review
China economic, Internet, and technology news
Baidu (BIDU) financial performance and stock charts
Select news regarding the Universe, Earth, Humanity, Future


Visit Osprey Port News Network!
Apple, Google, Baidu, China, technology, financial system, stocks, markets, economy, science, environment, future


Follow Neo Solomon (@NeoSolomonX) on Twitter!


# # #