Rumour Tuesday

[richardw]

Possible Fitch downgrade of Greece. Anyone heard anything?

[SimonPB]

they been down graded a few times already, most recently was last week .. think some agencies already consider their bonds to be junk status ..

[richardw]

IIRC if two of the major agencies think you're still investment grade, then you're kinda ok. If 2 out of 3 think you're junk then e.g. many companies can't hold your debt? I could be way off, but I remember something like that.

[SimonPB]

the rating agnecies are so far behind the curve and tainted after the crisis that I don't know who'll take them seriously ??

[richardw]

Agreed, they're fully lagging indicators :) They're a warning that you should quit investing if you don't already know what they're about to tell you!