Fitch Ratings has broken rank with its two fellow ratings agencies and upgraded the Philippines’ sovereign rating to investment grade for the first time, citing the resilience of the domestic economy, improved fiscal management and prudent monetary policy.
The Philippine stock index surged to a record high on Wednesday following the long-awaited ratings action, which is expected to precipitate similar moves by the other major debt watchers in the coming months.
By Tom Lydon:
The iShares MSCI All Peru Capped ETF (EPU) strengthened after Fitch Ratings upgraded the country's credit rating, praising the economy's ability to absorb shocks in the system.The fund gained 5.5% over the past three months, but is still down 23.4% year-to-date.
DETROIT (Reuters) - Fitch Ratings upgraded Ford Motor Co to investment grade on Tuesday, marking a key step that brings the second-largest U.S. automaker closer to reclaiming its Blue Oval trademark. Fitch upgraded Ford and its captive finance arm to "BBB-" from "BB+" to reflect the improvement in Ford's finances since its near collapse in 2006. Ford has lowered its break-even point since the last recession and improved its vehicle lineup. ...
Indonesia's recovery of its investment-grade status from Fitch ratings after 14 years will likely prompt upgrades by other agencies and attract an influx of foreign investment, analysts said Friday.Fitch upgraded Indonesia's sovereign debt rating from BB+ to BBB-, the bottom rung of its upper investment-grade tier, citing a decade of steady economic growth and rigorous reforms to lower the debt-to-GDP ratio.
International ratings agency Fitch on Monday upgraded Estonia's credit-worthiness, citing the European Union's green light for the Baltic state to adopt the euro in 2011.In a statement, Fitch said it was raising Estonia's long-term currency rating to A from the previous BBB+ and the local currency rating to A from A-.On July 13, a meeting of EU finance ministers gave formal approval for Estonia to become the 17th member of the eurozone from next January.
The only thing standing between Portugal's insanely decoupled low bond yields and the ugly fundamental reality is a BBB rating from DBRS which enables The ECB to keep buying the nation's bonds. The problem is, pressure is mounting on DBRS (the only 1 of 4 raters to maintain Portugal as investment grade) to drop the hammer... and Portuguese risk is rising.
And in response to these concerns, the last 2 days have seen the biggest surge in Portugal sovereign credit risk in 2 months...