Companies at risk of downgrade doubled in 2012

Author: cariedonna | Posted: 03.08.2012

The number of the companies, governments as well as the other institutions which are at the risk of a downgrade had doubled in the first half that is the starting six months of the year 2012. This is what the ratings agency Fitch has to report.

The finding of the agency are going to prove somethings that are a matter of worry for the investors given the fact that the economic growth all round the globe is now widely forecast to be quite slow in the second half that is last six months of the present year.

The number of countries that were hit due a negative outlook from the agency has almost doubled to a figure of 19.8 per cent in the first half of the year 2012, with the struggling countries of the eurozone bearing the brunt most of all the other in the world.

Six countries that fall in the eurozone had their ratings which was a measure of their credit worthiness had got lowered in a first half that but also saw a slight progress in ending the debt crisis of the Europe. The rating of Spain was cut down by five notches, while that was Greece was also trimmed down by four notches for being the country that was defaulted on its debt.

Monica Insoll, who works as an analyst at Fitch, had written in a review of the past six months of the year 2012, that the main cause is the issue of eurozone sovereign crisis, which is very much continues to percolate through to the other sectors also as well as, to an increasing extent in the other regions as well.

Fitch and also its rival rating agencies, Standard & Poor’s and Moody, have got a heavily criticism from the side of the governments of the country which are a part of Europe for exacerbating the crisis of the whole continent by reducing the ratings as the policymakers are struggling to come up with convincing answers for all the raised questions.

Contrary to all this, some of the investors are of the point of view that the agencies have actually been far too slow to act upon this matter, given the fact due to the combination of high debt as well as the recession that was faced by the countries such as Spain and also Greece. Fitch does not think that much pressure will put on countries that are already under debts. Apply with www.paydaytext.co.uk @ http://www.paydaytextcouk.co.uk/and get immediate cash aids.



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