Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Moody's Corporation    MCO

MOODY'S CORPORATION (MCO)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Moody's Downgrade Expectations, Euro Fears Fuel Bank Credit Underperformance

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/09/2012 | 02:43pm CEST

-- Italian, French, Spanish banks under pressure

-- Sovereign, sector-specific concerns sum with wait for Moody's axe

-- Some concerned downgrades would be worse than expected given troubled environment

By Serena Ruffoni

Of

While the spectre of a downgrade of European banks by Moody's Investors Service Inc. looms, French, Italian and Spanish bank bonds, and the cost of insuring their debt against default, are underperforming in a weak market Wednesday.

The iTraxx Europe Senior Financial index, measuring the cost of insuring senior debt of 25 European banks and insurers and widely used as a gauge of investors sentiment towards the sector, is 15 basis points wider Wednesday at 272 basis points, as the resurgence of fears around the European debt crisis marks the end of a LTRO-induced quarter-long bullish stance.

"French banks are some 10 basis points weaker, Italian and Spanish 10 to 20 basis point, generally." said a cash bond trader.

Italian banks were under pressure, as they are the first in line to bear Moody's axe. The ratings firm, in updating its timetable for a review of Western European banks, said the next rating actions are expected to occur in "early May", starting with Italian and then Spanish banks.

"Everybody did their own calculations on if, and how much major Italian banks would be downgraded" said a second trader "And although this is priced in, there is a risk that the final outcome would be worse than expected, with further downward pressure."

Credit default swaps on Intesa Sanpaolo rose 19 basis points to 469 basis points, UniCredit was 15 basis points wider at 486 basis points, while Monte dei Paschi di Siena, which has less liquidity than the previous two, rose 27 basis points to 563 basis points after a visit by Italian tax police to its headquarters Wednesday morning.

The investigation, as reported by Dow Jones Newswires, is about its takeover of Italian rival Antonveneta, occurred in 2007.

Spanish banks were also weak, the second trader said, as the threat of a ratings downgrade comes at time when concerns over Spain's over inflated real estate lendings have yet to be resolved. Bankia is set to receive state financial aid and be recapitalized, and the government is stepping up its efforts to clean up the banking system of billions of troubled real-estate loans.

Banco Santander was 18 basis points wider at 412 basis points, while Banco Bilbao Vizcaya Argentaria was 21 basis points wider at 444.

Nervousness about the next steps of newly elected centre-left president Francois Hollande is also hitting French banks, of which CDS are significantly wider Wednesday, underperforming their European peers. But new fears over Greece, which is currently in a political stalemate and risks leaving the euro, are weighing on those credits, a trader said, as they are long-standing creditors of Greece and have investments in the country.

Societe Generale, Credit Agricole and BNP Paribas SA CDS contracts are over 20 basis points wider at 335, 332 and 278 basis points.

-By Serena Ruffoni, Dow Jones Newswires; +44 (0) 207 842 9349; [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
BANCO SANTANDER -0.37% 5.356 End-of-day quote.-1.88%
BANKIA SA --End-of-day quote.
BNP PARIBAS -0.41% 63.24 Real-time Quote.2.01%
CRÉDIT AGRICOLE 0.04% 13.625 Real-time Quote.-1.30%
INTESA SANPAOLO 0.62% 3.173 End-of-day quote.13.84%
MOODY'S CORPORATION 1.32% 164.68 Delayed Quote.8.71%
SOCIÉTÉ GÉNÉRALE -0.45% 45.54 Real-time Quote.6.26%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MOODY'S CORPORATION
04/26MOODY'S : Hartford Must Raise New Revenue To Support Turnaround
AQ
04/26MOODY : and Local Bank Host Business Engagement
AQ
04/26RATING ACTION : Moody's Affirms Four and Downgrades Three Classes of JPMCC 2007-..
AQ
04/26ANNOUNCEMENT : Moody's publishes April edition of 'Structured Thinking: Asia Pac..
AQ
04/26RATING ACTION : Moody's Affirms Seven Classes of COMM 2015-LC21
AQ
04/25MOODY : Elects Vincent Forlenza and Gerrit Zalm to Board of Directors
BU
04/25MOODY : EMEA leveraged finance issuance volumes hit $63.9b
AQ
04/25RATING ACTION : Moody's assigns (P)Baa2 rating to PLN's proposed global MTN prog..
AQ
04/25RATING ACTION : Moody's withdraws Ladbrokes' ratings and outlook
AQ
04/25MOODY : Oil is on the Boil Again as Price Tops $75
AQ
More news
News from SeekingAlpha
04/26Notable earnings before Friday?s open 
04/24Moody's declares $0.44 dividend 
04/15Akre Focus Fund Commentary First Quarter 2018 
03/08BY THE NUMBERS : Profitable Stocks With Reasonable Valuations And Rising Earning.. 
03/07Moody's (MCO) Presents At Raymond James 39th Annual Institutional Investors C.. 
Financials ($)
Sales 2018 4 701 M
EBIT 2018 2 073 M
Net income 2018 1 436 M
Debt 2018 3 549 M
Yield 2018 1,08%
P/E ratio 2018 22,07
P/E ratio 2019 19,74
EV / Sales 2018 7,28x
EV / Sales 2019 6,73x
Capitalization 30 665 M
Chart MOODY'S CORPORATION
Duration : Period :
Moody's Corporation Technical Analysis Chart | MCO | US6153691059 | 4-Traders
Technical analysis trends MOODY'S CORPORATION
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 14
Average target price 177 $
Spread / Average Target 8,7%
EPS Revisions
Managers
NameTitle
Raymond W. McDaniel President, Chief Executive Officer & Director
Henry K. McKinnell Chairman
Michael S. Crimmins Chief Financial Officer, Senior VP & Controller
Tony Stoupas Chief Information Officer & Senior Vice President
Basil L. Anderson Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
MOODY'S CORPORATION8.71%30 665
S&P GLOBAL INC11.61%47 146
RELX-10.95%44 890
RELX N.V.-7.80%44 761
THOMSON REUTERS CORP-6.55%28 310
EXPERIAN GROUP-0.89%20 904