Thursday, March 15, 2007

Fitch downgrades Iceland!

Here's what happened last year, which eventually fed through into weakness in all currencies with large/deteriorating current accounts. It certainly doesn't feel like the same will happen this time around, though EUR/ISK a percent or so higher (Bloomberg screen not updating)


4 comments:

infd said...

Fitch left banks go this time.
It would be interesting to see when will Moodys "re-adjust" bank AAA ratings.

Macro Man said...

No doubt after the price has already moved....

infd said...

seems it will happen today
http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-03-16T120218Z_01_L16639377_RTRIDST_0_MOODY-S-BANKS.XML


Any view on how hard they will have to cut?

Macro Man said...

Nope, other than 'well away from triple-a!'