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Investing in Govt. securities today riskier than Greece bonds. Rating ‘True and Correct’

+3
kovida
Gaudente
Quibit
7 posters

Go down  Message [Page 1 of 1]

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

27th August 2017, FactCheck Sri Lanka

CLAIM

Investing in Govt. securities today riskier than Greece bonds

RATING

 Investing in Govt. securities today riskier than Greece bonds. Rating ‘True and Correct’ Factch10

ORIGIN

Article published in Daily Mirror dated 2017-08-26

Investing in Govt. securities today riskier than Greece bonds

Former Central Bank Governor Ajith Nivard Cabraal said an investment today in the Sri Lankan Government Securities such as Treasury Bills, Treasury Bonds, Development Bonds, and International Sovereign Bonds pose a much higher credit risk than that faced by those who invested in Greece Bonds in April 2011.

“Further, it is also to be noted that in April 2011, when the Central Bank invested in the Greece Bonds, the international credit rating of Greece was BB+ which was 3 notches higher than Sri Lanka’s current rating of B+ (negative).”

http://www.dailymirror.lk/article/Investing-in-Govt-securities-today-riskier-than-Greece-bonds-135388.html

__________________________________________________________________________________

Published on ECONOMYNEXT dated Mar 08, 2017

Sri Lanka’B+’ rating confirmed by S&P; negative outlook unchanged

http://www.economynext.com/Sri_Lanka_B+__rating_confirmed_by_S_P;_negative_outlook_unchanged-3-7510-1.html

__________________________________________________________________________________

Sri Lanka | Credit Rating

Standard & Poor’s credit rating for Sri Lanka stands at B+ with negative outlook. Moody’s credit rating for Sri Lanka was last set at B1 with negative outlook. Fitch’s credit rating for Sri Lanka was last reported at B+ with stable outlook. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of Sri Lanka thus having a big impact on the country’s borrowing costs. This page includes the government debt credit rating for Sri Lanka as reported by major credit rating agencies.

https://tradingeconomics.com/sri-lanka/rating

__________________________________________________________________________________

Greece | Credit Rating

Period between 2010 – 2011

https://tradingeconomics.com/greece/rating

_________________________________________________________________________________

Sri Lanka Fitch Credit Rating as of March 2017 is B+

Greece Fitch Credit Rating as of January 2011 is  BB+

Investing in Govt. securities today riskier than Greece bonds in January 2011

https://factchecksrilanka.com/2017/08/26/investing-in-govt-securities-today-riskier-than-greece-bonds-rating-true-and-correct/

Gaudente


Manager - Equity Analytics
Manager - Equity Analytics

as long as your workers abroad keep sending over 6 billions $ remittances every year , I can't see how you can possibly go bankrupt.
Your current account deficit/GDP ratio is 2.5% , when Greece went bankrupt it was 15%.

Gaudente


Manager - Equity Analytics
Manager - Equity Analytics



http://www.economynext.com/Sri_Lanka_B+__rating_confirmed_by_S_P;_negative_outlook_unchanged-3-7510-1.html
We project annual growth in general government debt to average 4.4% of GDP for 2017-2020, versus an average of 7.0% annually from 2014-2016. In view of Sri Lanka's robust nominal GDP growth, we project net general government debt to decline to 65% of GDP through 2020, assuming currency stability versus the dollar (and hence a degree of real exchange rate appreciation).


Hardly a negative projection , I'd say  Basketball

kovida

kovida
Manager - Equity Analytics
Manager - Equity Analytics

Gaudente wrote:


http://www.economynext.com/Sri_Lanka_B+__rating_confirmed_by_S_P;_negative_outlook_unchanged-3-7510-1.html
We project annual growth in general government debt to average 4.4% of GDP for 2017-2020, versus an average of 7.0% annually from 2014-2016. In view of Sri Lanka's robust nominal GDP growth, we project net general government debt to decline to 65% of GDP through 2020, assuming currency stability versus the dollar (and hence a degree of real exchange rate appreciation).


Hardly a negative projection , I'd say  Basketball
A POLITICALLY MOTIVATED STATEMENT MADE BY FORMER CB GOVERNOR NIVARD CABRAL  TO COVER UP HIS BLUNDER IN   THE INVESTMENT OF GREEK BOND. WE LOST WHOLE MONEY IN THAT INVESTMENT. THIS IS  ONLY ONE CASE AGAINST HIM. LIST IS VERY LONG ONE TO COME.

ranferdi

ranferdi
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

The Person who spend on Greek bonds, Now commenting on Sri Lanka bonds,,
If he is the CB governor in banana republic now for him SL bonds will be much more attractive than Greek bonds...
There will be lot like him in the world so no worry investors will come.

http://::::THIS EMAIL DOESNT WORK.. PLEASE CONTACT ME ON FB ACCO

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics

Why Pro Govt or anti Kabral writers cannot counter attack the fact he highlighted ?

Was Greek at BB +  and now are we  at B+   ?  

Which is safer  BB+ or B+ ?  

What about Role Thinking ?
How outsiders see this ?  Greek was BB+ and failed. Sri Lanka has gone even 3 steps down  from that level (as per this news).

We criticize Kabral for investing in BB+
Can we expect others to invest in our b+  ?

 Investing in Govt. securities today riskier than Greece bonds. Rating ‘True and Correct’ Cases110
 This is how we are performing since Jan 2015 with new Managers .
Fired on the most merciful day and flying high, no one in control.

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics

 Investing in Govt. securities today riskier than Greece bonds. Rating ‘True and Correct’ Cases111
Rise and Fall of Sri Lanka.
Decaying of our external reserves , triggered on that marvelous Hopping Hopper day.  
How far can we go down like this ?


චුට්ටක් වත් බය හිතෙන්නෙ නැද්ද ?
ඇයි මේ චාර්ට් හරියටම 2015 මුල ඉඳල කණපිට හැරෙන්න පටන් අරන් තියෙන්නෙ කියල හිතෙන්නෙ නැද්ද ?

DS Wijesinghe


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Chinwi wrote:Why Pro Govt or anti Kabral writers cannot counter attack the fact he highlighted ?

Absolutely. Always reason out, or argue on the facts or points highlighted

ranferdi

ranferdi
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

DS Wijesinghe wrote:
Chinwi wrote:Why Pro Govt or anti Kabral writers cannot counter attack the fact he highlighted ?

Absolutely. Always reason out, or argue on the facts or points highlighted

IS that the fact that our ratings downgraded??

Please review the rating chart below; It seems we had same rating in 2008, 209, 2012 etc..

Correct me if I am wrong, I guess if someone is not having the credibility or trying cunningly mislead the crowd.

Link https://tradingeconomics.com/sri-lanka/rating

 Investing in Govt. securities today riskier than Greece bonds. Rating ‘True and Correct’ Rating10

http://::::THIS EMAIL DOESNT WORK.. PLEASE CONTACT ME ON FB ACCO

ChooBoy


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Greece is more developed than Sri Lanka.

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