Today I have been looking at the main 4 Credit Rating Agencies. Namely Moody's, Fitch, S&P and Dagong.
All have their personal standards to which they rate. Some are conservative, some are offensive, some are defensive and some are outright political instruments. (Fitch is friends with Sarkozy, FR)
Dagong, is the one I focussed my attention to. Mainly because they have shown insight and are not afraid of stating their calculated opinion. It is a fact that Dagong predicted the downfall of economies long before the others did.
The total debt (debentures) totals to:
European Union EUR -10,245 billion
United States EUR -10,653 billion
The major part of this debt is owned by governements (88%) and the other part (12%) by Banks.
Subsequently this makes economies and countries weak and volnerable.
That is precisely what Dagong reflects in their Global Credit Rating List. Personally I go for their rating, over the rating of western politically influenced rating agencies.
The current situation (-7 days) was as follows:
EUR 218 billion is highly likely to be paid
EUR 9,344 billion is probably being paid back but is under review (If a double dip is imminent furhter downgrades are likely)
EUR 683 billion has the Junk status and is best considered a loss
The United States have been degraded to a Single A status and are considered an equal risk as Estonia, Russia, South Africa and Spain.......
Moody's, S&P and the others will soon realize and follow...
