Fitch Issues Further Downgrades but Optimism Remains for the Outcome of Greek Talks says Pan American Metals of Miami

Top Quote Fitch issues credit downgrades but Greek talks offer optimism. End Quote
  • (1888PressRelease) January 29, 2012 - MIAMI, FL - Fitch Ratings cast a further blow to Europe's hopes of stabilization by issuing downgrades to five members of the euro zone, Spain, Italy, Belgium, Slovenia and Cyprus. Ireland's BBB+ rating was confirmed but all six countries have a strong possibility of suffering further downgrades over the next two years. Fitch has made it clear that it does not consider enough is being done to assure recovery in Europe.

    The market is becoming used to credit downgrades and will not necessarily react strongly. However, the latest news is unfortunate, coming just as Europe struggles to retain credibility and the possibility of stabilizing its economy and as the euro has begun to gain ground against other currencies in anticipation that Greece may come to an agreement with her creditors and avoid default. Breaking news, Thursday, suggested that private-sector lenders were ready to accept a rate of less than 4% for new Greek bonds, in a voluntary debt swap.

    "It is uncertain how much attention investors really pay to these credit downgrades," says Bill Hionas of Pan American Metals of Miami, a South Florida precious metals company. "However, it does suggest a lack of confidence in the region's ability to stabilize its economy. The Greek talks, on the other hand, are looking far more optimistic, which has to be good news for the region."

    The euro has been gaining ground against the dollar, following a decision by the Federal Reserve to maintain low interest rates. As a result, prices of gold and silver have surged strongly as investors search for a safe haven.

    About us:

    Pan American Metals of Miami, LLC is a group account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.


    Press Contact

    Debbie Bailey
    Executive Administrator
    Pan American Metals of Miami, LLC
    Email: dbailey ( @ ) investpanam dot com

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