It was a tumultuous week. Volatility will lurk until trade issues are resolved. Perhaps the best markets can hope for on the trade front is a long-lived truce.
It has been pilloried for failing to spot the danger in sliced-and-diced US sub-prime mortgages, and lambasted for its cosy relationships with the Wall Street banks. But sluggish ratings agency Moody's yesterday moved to demonstrate that it is ahead of the curve on the expected avalanche of corporate bankruptcies in the US. The credit scorer has published a list of the US companies it believes are most likely to default on their debt.
Called the "Bottom Rung," the list is comprised of companies with a B3 credit rating or below, and whose ratings are negative or being reviewed. A B3 rating is the sixth-lowest rating that Moody's offers and is considered "junk" status. Moody's MCOwhich rates 2, companies' debt, will update its list monthly. This month, companies made the cut.
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Looking to get past criticism that it and other rating agencies have been more reactive that proactive in staying ahead of a financial mess that seems ever-likely to lurch forward in coming months, Moody's Investors Service on Tuesday unveiled its own list of troubled companies -- published in a list the agency is calling "the Bottom Rung. While some companies -- Eastman Kodak EK most notably -- have objected loudly to their inclusion on the list, Moody's placed four U. Last Friday, Moody's had cut Hovnanian's corporate family ratings deeper into junk territory on concerns over weakening cash flow; meaning the builder's inclusion on the list probalby wasn't that surprising.
Global Markets. Here's a snapshot of Moody's newest investor publication, "Bottom Rung". The announcement of this new quarterly given by the rating agency gives investors another valuable tool as we continue buckling down for this economic long haul.
Pilloried for missing credit problems in the nation's mortgage markets, credit-ratings firm Moody's Investors Service is trying to get ahead of corporate bankruptcies. The firm on Tuesday is publishing a list called the Bottom Rung, detailing the companies that Moody's says are most likely to default on their debts. With companies, the list holds nearly every sector of the economy. The dominant industries on this at-risk list include much of the U.
There are companies on the list, which is current as of March 1, including some near and dear names for people who love the media business. Why do this? The Wall Street Journal offers some possibilities :.