S&P affirms Dominican Republic ratings

Criss Colon

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Jan 2, 2002
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Why is it,that as I read "S&P's" report,I get the feeling that they are "Clueless" to the realities here on the ground in the DR???
Could it be,that they are not as "Independent & Impartial" as we are led to believe????
CCCCCCCCCCC
 

Randall Bell

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Feb 17, 2012
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Hi Guys,


I don't actually see any problems with this rating. Remember the rating agencies have a scoring system that's kind of like 'no child left behind' but on steroids! The B+/B rating that DR has received sounds 'healthy', but actually it's a pretty low grade. The ratings go like this:

AAA
AA+
AAAA-A+AA-BBB+BBBBBB-BB+BBBB-B+BB-CCC to C

<tbody>
</tbody>

so...

"BB" is = "not investment grade, speculative"

"B+" is = "highly speculative"

"CCC" is = "extremely speculative"


So we are between 'extremely' speculative and 'not investment grade speculative'.
 

bryan1258

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Dec 24, 2007
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Yup as well as Bear Sterns, B of A, Citigroup, Goldman Sachs, AIG, just to name a few of the sons of b1tches that rolled the dice with toxic securities. So much for deregulation.
were these not the guys who were giving Lehman Brothers a triple A rating just a couple of weeks before the collapso?
 

zoomzx11

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Jan 21, 2006
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hmmmmm, SEC, isnt that the organization that gave Bernie Madoff's investments a clean bill of health?
 

HIRAM

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Mar 19, 2005
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DR has a B+
USA?s credit rating was cut from AAA to AA+ and..... the USA is bankrupt........
 

bryan1258

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Dec 24, 2007
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Right you are although there were people in the SEC that tried to have him investigated. Finally his sons ratted the sleazeball out to the FBI.
hmmmmm, SEC, isnt that the organization that gave Bernie Madoff's investments a clean bill of health?
 
Jan 9, 2004
10,890
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Hi Guys,


I don't actually see any problems with this rating. Remember the rating agencies have a scoring system that's kind of like 'no child left behind' but on steroids! The B+/B rating that DR has received sounds 'healthy', but actually it's a pretty low grade. The ratings go like this:

AAA
AA+
AAAA-A+AA-BBB+BBBBBB-BB+BBBB-B+BB-CCC to C

<tbody>
</tbody>

so...

"BB" is = "not investment grade, speculative"

"B+" is = "highly speculative"

"CCC" is = "extremely speculative"


So we are between 'extremely' speculative and 'not investment grade speculative'.



To simplify the ratings a bit.....Anything BB or lower is just called "Junk" by bond traders.


Respectfully,
Playacaribe2
 

GinzaGringo

Member
Sep 29, 2010
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Interesting thread, thanks for the post. I think these ratings refer to the governments, not the nations as a whole, correct? So, in other words, just because a government does not have its financial house in order does not mean the nation, as a whole, is a bad place for investment, right? I think the DR has experienced pretty healthy economic growth over the last decade or so. The trick is to tap into that growth without loosing the shirt.
 

Randall Bell

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Feb 17, 2012
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Interesting thread, thanks for the post. I think these ratings refer to the governments, not the nations as a whole, correct? So, in other words, just because a government does not have its financial house in order does not mean the nation, as a whole, is a bad place for investment, right? I think the DR has experienced pretty healthy economic growth over the last decade or so. The trick is to tap into that growth without loosing the shirt.

Not quiet. Sort of yes and no.

These reports pertain very specifically to the debt that's been offered to the market. The quality of that debt, and the probability of maintaining interest payments and repayment terms.

So technically your government could be insane and eat people in cauldrons (like say Gabon or Sao Tome y Principe), but if you were pumping oil through your veins, or you're spitting out enough cash to pay your sovereign debts, you'd get a pretty high grade.
 

bryan1258

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Dec 24, 2007
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Ya...........didn't something like that just happen to a really big country to the north of the DR.

Playacaribe2??????????
 

Randall Bell

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Feb 17, 2012
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Ya...........didn't something like that just happen to a really big country to the north of the DR.

Playacaribe2??????????

No absolutely not!

The DR walking away from it's sovereign debt obligations means the government didn't pay it's bills to private entities outside the country.

What happened in America is the state stepping in and bailing out a few private companies to prevent a financial apocalypse (which is debatable that it would have ever happened)...


But nonetheless, these two events are materially different. Truth is America will never have a problem fulfilling it's debt obligations...you know why? because those debts are all in dollars, and if they want to (and they do want to), they can (and do) just print more dollars and deflate those debts down over time.

It's a prefect crime. The only victims are you and I. :(
 

bryan1258

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Dec 24, 2007
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So there was no US banking system meltdown...........WHEW!!!!!!!.....I must have had a nightmare. Sorry.
 

GinzaGringo

Member
Sep 29, 2010
382
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Thanks for the education, Randall. I think I get it, these reports are about government debt, I suppose this is primarily in the form of government bonds?