Bukele’s Bitcoin trade raises El Salvador’s sovereign credit risk: Moody’s
The credit rating agency believes El Salvador’s Bitcoin experiment has elevated the country’s risk profile and could limit its access to foreign debt markets. El Salvador’s historic embrace of Bitcoin (BTC) could have negative consequences on the country’s sovereign credit outlook, according to Moody’s Investors Service. Moody’s analyst Jaime Reusche told Bloomberg this week that El Salvador’s Bitcoin gambit “certainly adds to the risk portfolio” of a country that has struggled with liquidity issues in the past. Under the leadership of President Nayib Bukele, El Salvador has recognized....
Related News
What these credit ratings do is determine the cost at which governments and enterprises can issue debt. A lower rating will have an impact on the UK economy over the coming years. The Brexit has a lot of side effects that will affect the financial situation of both the EU and the UK. Moody’s one of the leading credit rating institutions in the world, lowered the UK’s sovereign credit rating. This “negative” outlook is not something most Britons were looking for, but they will have to face the consequences of their voting. Although not everyone pays much attention to credit ratings these....
El Salvador made history in September 2021 by becoming the first country to officially recognize Bitcoin as legal tender. Businesses in El Salvador have been slow to adopt Bitcoin (BTC) ever since the country famously recognized the digital asset as legal tender in September 2021, according to a recent survey by the Salvadoran Chamber of Commerce. Of the 337 companies polled between Jan. 15 and Feb. 9, only 14% said they had transacted in BTC since the Bitcoin Law came into effect. Over 90% of the companies indicated that Bitcoin adoption in the country had little impact on their sales.....
A new report from Moody’s Corporation details that there are currently over 120 blockchain-related projects involving Ethereum, Hyperledger, Microsoft, Bitcoin, and R3 CEV development. 120+ Businesses are Working on Blockchain Platforms. In Moody’s latest research offering called “Credit Strategy — Blockchain Technology: Robust, Cost-effective....
To put this into numbers people can understand, Deutsche Bank’s market leverage ratio is 96%. This makes them one of the world’s riskiest banks to deal with. Things continue to evolve in the wrong direction for Deutsche Bank in recent months. After being hit with large files several times in a row, there have been questions regarding the liquidity of this bank. Moody’s has issued a new warning about Deutsche Bank, stating how the institution is getting near its “default point.” That may be the last thing investors of the bank want to hear right now. To put the news into perspective,....
The economic fallout from Britain’s surprise decision to leave the European Union could continue for a while, with Moody’s lowering the country’s long-term issuer and debt rating from “stable” to “negative.” The rating affects rates the UK must pay to borrow money. Both Moody’s and competitor Fitch had already set Britain’s credit rating at Aa1 (the....