by John Galt
June 21, 2012 17:32 ET
Click on this link to visit Moody’s webpage for all financial ratings actions.
Nothing better than a long day at work and coming home to a nice, toasty, warm bloodbath.
Of course that only counts if one is a vampire or short the financials, precious metals, energy sector, and CNBC viewership numbers. The market supposedly had “built this in” and the action was going to be labeled an expected “non-event” if you believed the used car sales people passing as “stock analysts” on the various Bubblevisions. The reality was what I outlined on my radio program last night (click here to download or listen to archive) that the failure of the S&P 500 to cross and hold the 1360 level with volume and Gold failing to break through the $1620 resistance area. With the commodity sector leading the way, the rest of the market was doomed and the actions below by Moody’s is simply the bloody nail in the coffin for the short term.
Summary of downgrades/actions by Moody’s:
Bank of America Corporation
Long-term senior unsecured debt to Baa2 from Baa1, outlook negative; Short-term P-2 affirmed
Barclays
Long-term issuer rating to A3 from A1, outlook negative; Short-term to P-2 from P-1
Citigroup Inc.
Long-term senior debt to Baa2 from A3, outlook negative; short-term P-2 affirmed
Credit Suisse Group AG
Provisional senior debt to (P)A2 from (P)Aa2, outlook stable; Provisional Short-term (P)P-1 affirmed
Goldman Sachs
Long-term senior unsecured debt to A3 from A1, outlook negative; Short-term to P-2 from P-1
HSBC Holdings
Long-term senior debt to Aa3 from Aa2, outlook negative; Provisional Short-term (P)P-1 affirmed
JPMorgan Chase
Long-term senior debt to A2 from Aa3, outlook negative; Short-term P-1 affirmed
Morgan Stanley
Long-term senior unsecured debt to Baa1 from A2; outlook negative; Short-term to P-2 from P-1
Royal Bank of Scotland Group
Long-term senior debt to Baa1 from A3, outlook negative; Short-term P-2 affirmed
Actions on the actual Operating Companies:
Bank of America
Long-term deposit rating to A3 from A2, outlook stable; Short-term to P-2 from P-1
Barclays Bank
Long-term issuer rating to A2 from Aa3, outlook negative; Short-term P-1 affirmed
BNP Paribas
Long-term debt and deposit rating to A2 from Aa3; outlook stable; Short-term P-1 affirmed
Citibank
Long-term deposit rating to A3 from A1, outlook stable; Short-term to P-2 from P-1
Credit Agricole
Long-term debt and deposit rating to A2 from Aa3, outlook negative; Short-term P-1 affirmed
Credit Suisse AG
Long-term deposit and senior debt rating to A1 from Aa1, outlook stable; Short-term P-1 affirmed
Deutsche Bank AG
Long-term deposit rating to A2 from Aa3, outlook stable; Short-term P-1 affirmed
Goldman Sachs Bank USA
Long-term deposit rating to A2 from Aa3, outlook stable; Short-term P-1 affirmed
HSBC Bank
Long-term deposit rating to Aa3 from Aa2, outlook negative; Short-term P-1 affirmed
JPMorgan Chase Bank
Long-term deposit rating to Aa3 from Aa1, outlook stable; Short-term P-1 affirmed
Morgan Stanley Bank
Long-term deposit rating to A3 from A1, outlook stable; Short-term to P-2 from P-1
Royal Bank of Canada
Long-term deposit rating to Aa3 from Aa1, outlook stable; Short-term P-1 affirmed
Royal Bank of Scotland
Long-term deposit rating to A3 from A2; outlook negative; Short-term to P-2 from P-1
Societe Generale
Long-term debt and deposit to A2 from A1; outlook stable; Short-term P-1 affirmed
UBS AG
Long-term debt and deposit to A2 from Aa3, outlook stable; Short-term P-1 confirmed.
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Considering the mildness of the cuts the markets are now primed to rally about 100 to 200 points tomorrow on low volume. Party on Wayne, Party on Garth.
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