Moody’s Analytics is launching a new stablecoin service that will use AI to predict probable depeggings “in a 24-hour time horizon” while providing real-time insights about stablecoin issuers’ liquidity and stability.

Source: cointelegraph

#Moody's #Stablecoins

S&P Global Affirms China's Credit Rating Amidst Moody's Negative Outlook. 🇨🇳📌

In a recent statement, S&P Global Ratings addressed the stability of China's credit rating and outlook following Moody's decision to downgrade the country's credit rating outlook to "negative."

- Contrary to Moody's recent move, S&P Global has maintained the status quo for China's credit rating.

- S&P confirmed its A+ long-term rating for China in June with a stable outlook, and there have been no changes since then.

- The current assessment by S&P Global reflects a 'stable' outlook for the creditworthiness of the Chinese government.

It's worth noting that the global financial landscape remains dynamic, and credit rating agencies play a crucial role in assessing and communicating the economic health of nations. Investors and policymakers often closely monitor such developments to make informed decisions in the financial markets.

#China #S&P #Standard&Poor's #Moody's

Moody's and Fitch Assessments on Turkey's Economy. 🇹🇷⚠️

In recent updates from credit rating agencies Moody's and Fitch, positive sentiments are expressed regarding Turkey's economic situation. Here's a summary of their key points:

🔝 Fitch's Perspective:

Fitch Ratings' Country Ratings Director, Paul Gamble, finds the normalization steps in Turkey reassuring for foreign investors.

Despite positive trends, Gamble emphasizes the need for time and acknowledges significant challenges.

The policy changes post-election are seen to reduce short-term macro-financial stability risks and payment balance pressures.

However, he highlights the importance of continued confidence in the sustainability of these policy adjustments.

🆙 Moody's Analysis:

Moody's acknowledges the potential for a positive outlook if the tight monetary stance is maintained, and wage agreements align with the Central Bank's inflation reduction goal.

Positive indicators include a decrease in the current account deficit and an increase in foreign exchange reserves, especially if tied to improved external competitiveness and sustained capital inflows.

Moody's suggests a return to orthodox monetary policy is a positive move and notes the substantial tightening by the Central Bank.

Concerns are raised about imminent inflationary pressures, especially with potential excessive wage increases, and the importance of broader economic stability.

⏩ General Observations:

Moody's has not issued a specific rating update but maintains Turkey's credit rating at B3 with a stable outlook.

Standard & Poor's (S&P) recently shifted its credit rating outlook for Turkey from stable to positive, citing evidence of the country's economic rebalancing.

📝 Factors for Positive Outlook:

- Improvement in payment balance results.
- Increase in domestic savings.
- Strengthening of the Turkish Lira.
- Rise in available foreign exchange reserves.

#Moody's #Standard&Poor's #Fitch #S&P #Turkey

Moody's Expected to Upgrade Turkey's Credit Outlook. 🇹🇷🔝🆙

Moody's, a prominent credit rating agency, is poised to make a significant announcement regarding Turkey's credit outlook on January 12, 2024. While the credit rating is expected to remain at "B3," there's a buzz about a potential upgrade in the outlook from "stable" to "positive."

A recent survey conducted indicates a prevailing optimism among economists, with 10 out of 13 predicting a positive outlook. Furthermore, five analysts foresee an upgrade from the current "B3" rating to "B2." This speculation follows Moody's last adjustment in August 2022 when the credit rating was downgraded from 'B2' to 'B3' with a revised "stable" outlook.

▪️Analyst Predictions:

The absence of a December 15 report in 2023 has heightened the anticipation for Moody's upcoming evaluation. Analysts point to sustained tight monetary policy and inflation-targeted wage agreements as factors contributing to the potential shift from a "stable" to a "positive" outlook.

▪️Other Rating Agencies:

While Moody's is set to reveal its assessment on January 12, Fitch and CI Ratings have scheduled their reports for March 8, 2024, and September 6, 2024, respectively. Notably, S&P Global upgraded Turkey's outlook from "stable" to "positive" on November 30, 2023.

▪️Economic Indicators:

Economic indicators, such as Turkey's Treasury's cash deficit, have witnessed a staggering increase from 169.4 billion TL in 2022 to a record-breaking 625.5 billion TL in 2023. Concerns about rising cash deficits are influencing Moody's assessments, adding complexity to the upcoming announcement.

▪️Public Sentiment:

Public sentiment surrounding the potential credit outlook upgrade is a mix of skepticism and frustration. Concerns about economic policies and their impact on retirees are prevalent, with some expressing skepticism about the credibility of credit rating agencies. These sentiments reflect broader economic apprehensions.

#Moody's #TurkeyCrypto #TurkishLira #Turkey #türkiye

#Moody's announced on Thursday that it changed Coinbase's outlook from stable to negative after the U.S. Securities and Exchange Commission filed a lawsuit against the #crypto exchange earlier this week. The credit rating agency, which did not care about the biggest stock market of the USA, punished the biggest actor of the region in the middle of the war quite normally.

“The stable to negative outlook reflects the magnitude of the ambiguous impact of the SEC’s accusations on Coinbase’s business model and cash flows.”

Moody's announced the economic report for countries. 📋🏦💲

As the world charts its course through the economic waters of 2024, Moody's offers insights into the intricate dance of global economies within the G20. The forecast projects a subtle decline in G20 economic growth, easing from 2.9% in 2023 to 2.4% in 2024, with a modest rebound to 2.6% in 2025.

In the wake of the post-COVID-19 landscape, the global economy finds stability, buoyed by effective policy strategies, improved supply-demand balances, and the tempering influence of mild European winters. Despite a robust U.S. economy, concerns loom on the horizon, with persistent geopolitical risks and inflation casting shadows over the economic outlook.

G20 growth takes a nuanced turn, with advanced economies anticipating a growth of 1.5% this year and 1.6% in the next. Notably, Argentina stands as an exception, projected to experience contraction. Major central banks, including the Fed, ECB, and BoJ, embark on a journey to lower interest rates, contingent on the taming of inflation.

Moody's maintains a watchful eye on the Fed, foreseeing a potential 100 basis points rate cut in 2024, followed by further adjustments in 2025. Meanwhile, the ECB is poised to initiate policy normalization in the second quarter. While macro-economic risks decrease, geopolitical tensions, notably the Russia-Ukraine conflict and disturbances in the Middle East and Asia, persist as uncertainties impacting global growth.

The report highlights the global interplay of domestic economies, trade, and technology transfers in relation to international affairs. Notable adjustments include upward revisions for the U.S., India, and Russia, but lowered growth expectations for the Eurozone, Germany, Saudi Arabia, and Argentina.

Turkey is expected to demonstrate resilience with a forecasted 2.5% growth in 2024 and an additional 3% in 2025, offering valuable insights amidst the evolving economic landscape according to Moody's projections.

#G20 #Turkey #Moody's #economy