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Tensions came to a further head last week when S&P "mistakenly" issued a downgrade of French debt only to withdraw it two hours later.
Charlie Mills at Credit Suisse, who issued a downgrade the day before the warning, said A generous view of the trading update might be that the problems are largely behind the group and the second half should see some stability.
DealBook » Moody's Says It Was Surprised by MF Global's Bet | The credit ratings company Moody's told a Congressional subcommittee it did not know about the brokerage's large bets on European debt until three days before it issued a downgrade, The Wall Street Journal reports.
Cowen & Co., reportedly issued a downgrade.
An agency that rates fire departments has just issued a downgrade, causing everyone to hoard water.
S&P did not wait, and issued a downgrade the following Monday.
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The agency has threatened to issue a downgrade, which would push up bond yields further, but said the document was a mistake.
BLOOMBERG NEWS Morgan Stanley Outlines Effectct of Potential Downgrade | Morgan Stanley said it would have to post an additional $6.52 billion in collateral if Moody's acted on a warning that it might issue a downgrade of up to three levels, Reuters reports.
On Friday, the company notified the Treasury that it planned to issue a downgrade after the markets closed, and sent the department a copy of the announcement, which is a standard procedure.
Another warning, issued privately to lawmakers by Standard & Poor's and reported widely, was perhaps even more chilling: Even if the government stays current on its debt payments but halts spending on other items due to the lack of a timely debt deal, the agency might issue a downgrade.
With federal lawmakers battling over a deal to give the U.S. government more borrowing authority, major credit rating agencies have lent a sense of urgency to the proceedings by threatening to issue a downgrade, which experts fear could throw financial markets into turmoil and impede the economic recovery.
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