Millionday chat 10/02
[millionday] ok here we go here is some news - and first if i had a chance to show you what i had been working on like i have it to make sense -- would be better but anyway
[millionday] here is some information on what a sovereign rating does and is for a country - the way that most of us would remember it would when ours was threatened
[millionday] the us had threats or at least risk of our credit rating being lowered not too long ago and that is what they were talking about
Read More Link On Right
[millionday] so here is this ---- Sovereign ratings have become increasingly important as countries around the world tap the international bond markets.
These credit ratings - issued to sovereign entities like national governments - take into account political risk, regulatory risk and other unique factors to determine the likelihood of a default.
The three most popular issues of sovereign ratings are S&P, Moody's and Fitch.
Since they were introduced in the early 1900's, sovereign credit ratings have had a turbulent history.
Moody's and other ratings agencies were taken by surprise after the Great Depression caused 21 out of 58 nations to default on their international bonds between 1930 and 1935.
And since then, more than 70 governments have defaulted at least once on their domestic or foreign currency debt. Where to Find Sovereign Ratings
The most significant sovereign ratings are published by the three major credit rating agencies - Standard & Poor's, Moody's and Fitch.
While there are also a number of smaller boutiques that offer ratings, these three agencies have the most influence over market decision makers. Investors can find sovereign ratings from these three ratings agencies using the following links:
•Standard & Poor's Sovereign Ratings •Moody's Investor Services Sovereign Ratings •Fitch Ratings Sovereign Ratings
[millionday] note -- notice before we move on a few things in this report --- that it is normally with the issue of bonds to use as a tool of their gain and trust in the country as in any credit rating
[millionday] also notice that they are gathered from the country paying their bills with any credit rating as well
[millionday] Ratings agencies use a variety of quantitative and qualitative methods to calculate sovereign ratings. But in a 1996 paper entitled "Determinants and Impact of Sovereign Credit Ratings", Richard Cantor and Frank Packer used a regression analysis to narrow the process down to six critical factors that explain more than 90% of the variation in credit ratings.
1.Per capita income comes into play since a larger tax base increases a government's ability to repay debt, while it can also serve as a proxy for a country's political stability.
2.Strong GDP Growth makes a country's existing debt easier to service over time, since that growth typically results in higher tax revenues and an improved fiscal balance.
3.High inflation can not only signal problems with a country's finances, but also cause political instability over time.
4.A country's external debt can be a problem if it becomes unmanageable.
5.Countries with a history of defaulting are perceived to have a higher credit risk.
6.More economically-developed countries are seen has less likely to default.
[millionday] last part of the summary --- Sovereign ratings have many effects on countries around the world. Several studies have shown that better sovereign ratings are associated with lower spreads.
In turn, these lower spreads equate to lower financing costs for countries issuing bonds. Cantor and Packer estimated in the aforementioned report that a single notch downgrade can raise these spreads by as much as 25%.
The effects of these higher spreads and financing costs can include:
•Inflation Risk. Central banks that print more currency to cover current and future debts risk causing inflation, which itself can lead to a number of economic problems.
•Political Instability. Countries that are unwilling or unable to print more currency may undergo austerity measures to cut their costs, which can result in civil unrest. •Fewer Options. Central banks facing high borrowing costs may not find it as economical to provide stimulus packages or other growth incentives during difficult times.
[millionday] now the reason i have brought this is because of the news reference and the upcoming meetings i will be reporting on throughout the next few days
[millionday] so let me show you the report now -- A member of the Association of private banks and bank manager Ashur Sherwan Anwar Mustafa importance , for Iraq on a global sovereign rating .
Mustafa said in his speech for the (morning) : " There are simple ways and mechanisms to get Iraq to this category, especially that all countries in the world dealing with the institutions of the international calendar ."
[millionday] He said a member of the Association that " in order to deal rating agencies andinternational calendar with Iraq, must be monetary policy stable without fluctuations , and maintain the stability of cash and commitment to international conventions,
noting that the current trend is going in the way of the signing of international treaties that give a guarantee to the investor , which is " mattress " for any organization evaluating an international assessment of the situation in Iraq in general backing and support of UN organizations .
considered Mustafa that the sovereign rating important issue for the country and deal internationally, especially at the level of financial institutions, noting that any goods up to Iraq , the cost of shipping charges and export extra, because the absence of an international classification for him.
[millionday] now we have committment to many many international conventions -- we also have many treaties and agreements with guarantees on debt
[millionday] the benefit is financial and will lower their cost of doing business as it does for anyone -- as in interest rates - so as we see -- this is huge huge news
[millionday] very very interesting and of course shows us where they are headed and where cbi is headed international !!!! brb with more
[millionday] Committee of Economy and Investment parliamentary MP Nahida Daini inclusion of a paragraph in the law of the Ministry of Commerce include the opening of branches of the Department of Registration of companies in the provinces of economic and commercial activity .
She Daini told the (morning) that the Ministry of Commerce is concerned party registration Acharkalt especially that Iraq now need to enter the investment companies to the provincial economic border to take its role in the development process.
Pointing to the need for accounting firms lagging according to the law and to develop new regulations to reduce administrative corruption for companies involved in investment projects.
They pointed out that the law of the Ministry of Commerce under discussion in the House of Representatives , and it is hoped that the positive changes happening in the work of the ministry.
[millionday] so now is the time to open at the border for the trade to go on and they will be including the law for local imports and exports for a market
[millionday] this ties directly in with what we saw last night saying that they changed the way that foreign investors will be able to get their visas and licensing and permits -- online and with the one stop shop they started working on about a year ago if i remember right but we read about it some time ago economy also
[DT N AZ] but they need a currency to work with
[millionday] this ties directly in with what we saw last night saying that they changed the way that foreign investors will be able to get their visas and licensing and permits -- online and with the one stop shop they started working on about a year ago if i remember right but we read about it some time ago
[millionday] what this would mean is that they would pay fees to multiple ministries and also have contact with them by email and by internet
[Domino] millionday This is great news although not something we question given the # of times we've seen it. I love it and of course love results (past tense) even more.
[millionday] yes they need a currency to work with and a trad-able currency to take any part in the benefits of all of these things -- the credit rating is
[millionday] we have seen it as goals -- not as action -- so this is much better smile
[millionday] we knew that these things would be coming to light when they were ready and the isx was ready because of the direct effect it has on their stock market and also the markets that have contracts with them -- and the ball rolls
[millionday] brb with more smile
[Domino] millionday Can you say why it's better, it still seems to be worded as "need to"?
[millionday] now if this doesnt make you smile -- check your pulse
[millionday] Domino because now they are trying to get iraq to the point they have a credit rating -- among the ways are the things listed that i told you already had done and this is simple –
this is what they said that makes it better to me >>>>>>>>>>>> " There are simple ways and mechanisms to get Iraq to this category, especially that all countries in the world dealing with the institutions of the international calendar ."
He said a member of the Association that " in order to deal rating agencies and international calendar with Iraq, must be monetary policy stable without fluctuations
[millionday] so they are saying that all the countries are already dealing with them in one way or another -- with trade agreements or conventions and also treaties -- so they are getting iraq a credit rating by using these points that they didnt have before iraq was released or these agreements could be recognized
[millionday] make sense ? ok so here is this
[DT N AZ] yes makes sense but the simple ways to part has no time table to it
[millionday] he must have gotten distracted
[cookie2] millionday It helped us understand -- TY
[millionday] i am going to be bring more on it through the week -- it is just showing how close they are to breaking out into full market economy -- it doesnt have to be done but saves on interest rates and all the things we studied before
[millionday] The Central Bank summoned company (Western Union financial services, Inc.) to discuss the company's work in Iraq. A statement from the Central Bank received (News Agency), a copy of: the Central Bank Governor Abdel Basset Turki Agency held a meeting with the company (Western Union financial services, Inc.) to discuss the company's future work in Iraq.
[millionday] here we have the western union and we know what that means smile brb
Part 2 Continued