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Moody's, a credit-rating agency, has given Hong Kong banks a "negative outlook"—a warning that it may downgrade them.
In addition, some analysts said the agencies that rate the utilities' creditworthiness could immediately downgrade them substantially.
But ultimately, the government stands behind the major clearinghouses, so S.& P.'s decision to lower its federal rating forced it to downgrade them as well.
Yet many studies have found that rating agencies are more likely to upgrade companies when investors are bullish and downgrade them when investors are bearish.
A senior serving general has reportedly warned that a Jeremy Corbyn government could face "a mutiny" from the Army if it tried to downgrade them.
Meanwhile, several states and cities that have top-flight credit ratings were preparing for the possibility that S.& P. might downgrade them.
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downgraded them than they were before.
"Rather than creating gold standard qualifications they downgraded them to the lowest common denominator while inflating top grades.
S.&P., on the other hand, consistently rated these sovereign borrowers lower and downgraded them further beginning in 2004.
The bonds fell to earth in 2004, when Moody's Investors Service downgraded them to one notch above junk because of "weakness in sales for recorded music".
On March 12th Standard & Poor's (S&P) stripped the parent company and GE Capital of their AAA long-term ratings, downgrading them to AA+.
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