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Entries in Fitch Ratings (5)

Friday
Mar222013

Strong Corporate Earnings Push Stocks Higher to End Week 

Hemera/Thinkstock(NEW YORK) -- Strong corporate earnings pushed stocks higher to end the week, with the Dow up 91 points at 14,512 and the Nasdaq up 22 points at 3,245.

The S&P gained 11 points for the day to 1,557.

Robust earnings from Nike and Tiffany were the big drivers.  Nike's stock hit a record after the company announced a surge in quarterly profit, while Tiffany rose after its earnings beat expectations by about one percent.

Fitch Ratings is placing the United Kingdom's triple-A rating on review for a downgrade.  The warning comes just days after Britain's treasury chief unveiled an austere budget, despite weakness in the economy, and raises fears of another recession.

A New Jersey compounding pharmacy that issued a national recall of all of its drugs will remain closed for two more weeks.  Med Prep Consulting is investigating the cause of contamination found in bags of an IV drug given to women to control seizures and premature labor.

Goodyear's adding a new blimp to its iconic line of airships. It'll be larger, faster, and carry more passengers.

Copyright 2013 ABC News Radio

Friday
Dec162011

Fitch Places Six Eurozone Countries on Ratings Watch

Photo by David Ramos/Getty Images(PARIS) -- On Friday, the credit ratings agency Fitch put six European countries on a downgrade watch list, causing further threat to the Eurozone which has been facing a debt crisis.

Despite affirming France's triple A rating, Fitch downgraded the country's outlook from stable to negative which could mean a ratings downgrade in two years.

Belgium, Spain, Slovenia, Italy, Ireland and Cyprus were placed under Rating Watch Negative with the probability of a downgrade at the end of a review in Jan. 2012.

Fitch said the region's crisis has been on a negative decline since July causing concern about the financial stability of member nations.

"In the absence of a 'comprehensive solution', the Eurozone crisis will persist and likely be punctuated by episodes of severe financial market volatility," said the agency in a statement.

Copyright 2011 ABC News Radio

Monday
Nov282011

Fitch Cuts US Outlook from Stable to Negative

Comstock/Thinkstock(NEW YORK) -- There are new doubts about the ability of the United States to get its financial house in order. After the market closed Monday, Fitch Ratings announced it has revised its outlook on the U.S. credit rating from “stable” to “negative.”

“The Negative Outlook reflects Fitch’s declining confidence that timely fiscal measures necessary to place U.S. public finances on a sustainable path and secure the U.S. ‘AAA’ sovereign rating will be forthcoming,” Fitch said in a statement.

Fitch said blame rests with the so-called congressional supercommittee that failed to agree on spending cuts and tax increases to help reduce the nation’s deficit.

“By postponing the difficult decisions on tax and spending until after forthcoming Congressional and Presidential elections, the scale and pace of required deficit reduction will consequently be greater.”

Fitch maintained its AAA rating on U.S. debt and indicated the risks of a downgrade appear minimal. The other credit ratings agencies, Moody’s and Standard and Poor’s, also left their AAA ratings unchanged.

Copyright 2011 ABC News Radio

Thursday
Nov172011

Europe Debt Crisis Could Hit US Banks, Fitch Warns

Hemera/Thinkstock(NEW YORK) -- Fitch Ratings is warning that U.S. banks could be “greatly affected” if Europe’s sovereign debt woes continue to widen.  The report caused U.S. stocks to drop 200 points on the Dow Jones industrial average late Wednesday.

Stocks stabilized at the open Thursday morning after the government reported new claims for unemployment benefits last week dropped to a seven-month low, and another report showed that housing starts fell less than expected in October. But the Europe concerns weighed on the markets, with the Dow off 170 points, or 1.5 percent, by early afternoon in a sell-off that included gold down $55 an ounce to $1,719, and crude oil down $3.88 a barrel.

Fitch said that exposure by U.S. banks to the stressed European markets of Greece, Ireland, Italy, Portugal, and Spain were manageable but there’s concern that the debt woes are spreading to the larger economies of the region.

The ratings agency said the six largest U.S. banks hold about $50 billion in debt from the stressed nations. But exposure to the major economies of Europe is much larger.  The top five U.S. banks have $188 billion in exposure to French banks alone and $225 billion in exposure to the U.K.

“Fitch believes that, unless the eurozone debt crisis is resolved in a timely and orderly manner, the broad outlook for U.S. banks will darken,” the agency said in its report. “Currently, Fitch’s rating outlook for the U.S. banking industry is stable, reflecting improved fundamentals at most banks, coupled with generally lower ratings versus pre-crisis levels.”

Another worry is exposure to possible sovereign debt losses by money market funds affiliated with major U.S. banks.  

“Any prolonged turmoil could negatively affect capital market-related revenues well into the future, not to mention the possible effects on loan portfolios and other revenue opportunities,” Fitch said.

Copyright 2011 ABC News Radio

Tuesday
Aug162011

US Debt: Fitch Reaffirms AAA Credit Rating

Comstock Images/Thinkstock(WASHINGTON) -- Fitch Ratings says it is keeping the United States’ debt at a AAA rating, citing the country’s "flexible, diversified and wealthy economy.”

Fitch also said that its long-term outlook on the U.S. rating is stable.

The group’s more positive outlook comes on the heels of a U.S. downgrade from Standard and Poor’s to AA.

“This does tend to -- I think -- to some extent, mitigate the bad news of the downgrade of Standard and Poor's,” economist Hugh Johnson said of the Fitch announcement on Tuesday.

“I think it's far more accurate and much more sensible.”

Copyright 2011 ABC News Radio







ABC News Radio