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uh Oh - sadly I have to erm, erm…………. play with the Puppy so I leave RichKen on point.
Thanks for the insights FB - I think it does show we've got a good investment environment in spite what some would have us believe.
Ophidian...… here Puppy
Thanks again fb. Nicely done
right I am off out so as Ophidian was closest in the quiz he is available to take questions..... gla
James no worries.
the answer is the ratings are kept under constant review by the agencies. but only changes are announced. some countries have had the same rating for 5 years or more.
Oh sorry was looking on this page, its probably wrong. Its interesting though!
https://countryeconomy.com/ratings
FB - how regularly are the ratings reviewed, is it a biannual type approach or an as and when something changes in a country ?
Ophidian
James SA is BB+, the four you quote are weaker at BB, Of course other credit rating agencies do exist. gla
So sa shares the same rating by s&p as Paraguay, Serbia, Oman and Georgia. Hmm
Thanks you, thank you...…….
just goes to prove what a good investment environment can be represented as doesn't it. Thanks FB most enlightening.
Ophidian
ok -
Australia and Canada
USA
Ireland
South Africa
Brazil
Bahrain Jamaica Kenya Turkey
Egypt
Argentina
USA 3rd and SA 11th??
Thanks FB for the education, does help with the mis-information we receive in the media and BB's.
U.S.A. 2nd and SA 6th. My guesses!
I'm going with USA 3rd and South Africa 4th
Thanks FB very informative, brightened things up a bit. Come on Mokopane.
Well as USA has a AA+ now and Australia and Canada at least are still AAA I'd say USA are third at best and I'm going to guess SA would be 5th
Ophidian
I will put the answers up in 15 mins or so
here is a list of 10 countries rated by S&P. For fun if you were adding USA and SA to the list to make 12, what numerical position by strength of rating would USA and would SA be.
Argentina
Australia
Bahrain
Brazil
Canada
Egypt
Ireland
Jamaica
Kenya
Turkey
Exactly.... Well put fatbanker...
Thanks for info.
apologies SA are 11th not 10th, but the message is the same.
Cheers for the clarification FB, good post
And that is why I love the LSE board. Thanks FB!
I have been reading the various comments on credit ratings and thought I can offer some perspective here. I will use the S&P standard and poors scale as its easier to explain and easier to understand.
S&P use a 22 level rating scale, where AAA is the best and D is the worst.
The scale is AAA, AA,A,BBB,BB.B.CCC.CC.C and D.
AA through to CCC are subdivided with higher middle and lower using + for higher and - for lower.
so the 22 grades are AAA, Then 6 lots of 3, then CC,C and D.
Investment grade is everything in AAA, AA, A, BBB+ and BBB, which is the top 9 from 22.
so called junk status is BBB-, BB+,BB,BB-, B+,B,B-,CCC+, CCC,CCC-, CC, and C. 10 to 21 on the scale.
D is uninvestable because they have defaulted. 22
International bond markets still trade strongly in the 10 to 21 junk market, they just price the risk appropriately.
South Africa is BB+ with S@P which puts them on level 10 which makes them far from uninvestable, although clearly there would be more enthusiasm if they were up the scale.
My point is South Africa is not a basket case, or bust, or uninvestible. Its rating could be higher, but please don't assume that level 10 on a 22 rating scale is a no-hoper.
gla