Tuesday, 01 December 2009
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LEND THE GOVERNMENT OF FIJI AT YOUR OWN PERIL
Moody’s credit ratings are opinions of the credit quality of creditworthiness including sovereign creditworthiness.
In 1909, John Moody became the first financial analyst to assign letter grades to railroad bonds, giving investors an easier way to evaluate the rail companies' debt. It was the beginning of one of the most powerful forces in modern capitalism. Today a small club of bond-rating agencies, led by Moody's, Standard & Poor's and Fitch, wields enormous power, sending investors scrambling simply by changing the ratings that the firms assign to everything from Ireland's sovereign debt to General Electric's IOUs.
In 2001 Enron lost its investment-grade rating from Moody's, S&P and Fitch just five days before its collapse!!
Prior to the withdrawing of our rating, the government of Fiji was rated C, which is the lowest rating that warns prospective sovereign and commercial lenders that the Fiji Government is currently highly vulnerable to nonpayment and are currently in arrears ie typically in default, with little prospect for recovery of principal or interest.
We had discussed previously on RFN of how Sada Reddy was manipulating the issue of public sector securities through the Reserve Bank of Fiji and draining the peoples money from the Fiji National Provident Fund and other government controlled financial institutions to fund our broke military government.
One only has to look at the difference between the public sector security issues by RBF and what was tendered by our public trust funds to see the shortfall in being able to pay off debt due for redemption. It seems like our super fund FNPF has being well and truly milked dry.
When Moody's no longer rates an obligation on which it previously maintained a rating, the symbol WR is employed.
This is a nice way of saying to all prospective lenders, STAY CLEAR OF A SUNK SHIP!!!
Warning to Exim Bank from Chindia : LEND AT YOUR OWN PERIL and do not expect future generations to pay off any loans to an illegal government.
As it is the illegal "emergency loan" from the Asian Development Bank will be paid by all our children till 15 June 2041, procured by an illegal government that do not have the mandate of its people, thus you will not have the moral authority to collect on your illegal lending.
In any event we will hear it all over again within the next decade, losses by Exim Banking Group "caused by errors made by unsophisticated amateurs venturing into a highly technical and sophisticated market”
The Indian and Chinese Exim Banking Group will be our future BCCI - Bank of Credit and Commerce International who specialize in financing embargoed arms, drug trafficking and terrorists, the brainchild of the late Agha Hasan Abedi. Read Senator John Kerry's Report : United States Senate Foreign Relations Sub-Committee September 1992.
We will publish our findings on Exim soon so stand clear of the closing door.
God Bless Fiji <><
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