Not a casita in a campo, but a reminder of times past right in the middle of the sprawling resort project, Cap Cana.
Santo Domingo.- The specialized Website businessweek.com reports today that Moody’s Investors Service raised Dominican Republic’s credit rating one level on the prospects for economic growth.
“Moody’s raised the Dominican Republic’s government bond rating to B1, four levels below investment grade, from B2 with a stable outlook. The rating is in line with Mongolia, Lebanon and Suriname,” the publication affiliated to Bloomberg.com said.
“In addition to the Dominican Republic’s long-term track record as a high-growth economy, its ability to post positive gross domestic product growth last year denoted an increased ability to overcome external shocks relative to the past,” it said, quoting a statement by the analyst Mauro Leos.
Businessweek adds that observation has been boosted “by recent indications that growth is resuming at a higher-than-expected pace.”
Local forecasts
In recent days, the Central Bank, the Banks Superintendence and the National Business Council (CONEP) have issued positive statements on the country’s expectations for the economy, including Central banker Hector Valdez’s prediction of a 7.2% growth this year.
From: United States
bravo.
From: United States
bravo.
From: United States
bravo, says jarabacoa. the bond ratings declare the bonds to be ¨highly speculative, and below investment grade ¨, but jarabacoa gives the whoopee sign. holy jeezus!
Written by: Atabey, 23 Apr 2010 11:35 AM
From: United States, NYC
At least it's moving in the right direction.
Long-term obligation ratings
Investment grade
Aaa
Moody judges obligations rated Aaa to be the highest quality,[7] with the "smallest degree of risk".[8]
Aa1, Aa2, Aa3
Moody judges obligations rated Aa to be high quality, with "very low credit risk",[7] but "their susceptibility to long-term risks appears somewhat greater".[8]
A1, A2, A3
Moody judges obligations rated A as "upper-medium grade", subject to "low credit risk",[7] but that have elements "present that suggest a susceptibility to impairment over the long term".[8]
Baa1, Baa2, Baa3
Moody judges obligations rated Baa to be "moderate credit risk".[7] They are considered medium-grade and as such "protective elements may be lacking or may be characteristically unreliable".[8]
Speculative grade (Also known as High Yield or 'Junk')
Ba1, Ba2, Ba3
Moody judges obligations rated Ba to have "questionable credit quality."[8]
B1, B2, B3
Moody judges obligations rated B as spe
Written by: Atabey, 23 Apr 2010 11:36 AM
From: United States, NYC
Moody judges obligations rated Ba to have "questionable credit quality."[8]
B1, B2, B3
Moody judges obligations rated B as speculative and "subject to high credit risk",[7] and have "generally poor credit quality."[8]
Caa1, Caa2, Caa3
Moody judges obligations rated Caa as of "poor standing and are subject to very high credit risk",[7] and have "extremely poor credit quality. Such banks may be in default..."[8]
Ca
Moody judges obligations rated Ca as "highly speculative"[7] and are "usually in default on their deposit obligations".[8]
C
Moody judges obligations rated C as "the lowest rated class of bonds and are typically in default,"[7] and "potential recovery values are low".[8]
Special
From: Dominican Republic, vieja Santo Domingo
I am sorry that I have been having a big fight for my health recently but have tried to read these pages when I could .
The economic news for the DR keeps improving although most would like to see a better distribution of the increasing wealth, the Moodys improved rating is good news ,,there are many reputable companies listed on stock exchanges that have a rating that Moodys call below investment grade and of course there has to be a degree of speculation in Dominican bonds..this may not be because of the immediate economic situation but simply because latin politics and changing governments are somewhat erratic and variable.
I have been amazed to see ,now I am up and about ,the enormous progress in civil construction in the east , the capital and parts of the north...new bridge , new roads , new water pipes .
The emphasis on infrastructure improvements may not be to everyone´s taste but I have also seen many new books at the schools I have visited .
From: United States
I agree Ricardito and hope you get better. I have been to Brazil and Peru and in these countries there is no distribution of wealth compared to DR. Yes, DR can do better but compared to some south american countries the DR is socialism. That is why there is a Chavez in Venezuela and in Brazil there are always uprisings in the slum.
From: United States
Ricardolito, i really hope that your health is on the mend. it seems to be a prolonged issue, and i wish you speedy relief. that does not mean i will let you slide..lol
Written by: THINK, 23 Apr 2010 12:48 PM
From: United States, SDQ -- Mia --NY
In summary to further explain the Moody's credit rating for DR:
If the rating is lower (or worse ) than Bbb., which means the investment is not a good deal.
If DR is happy the rating from B2 upgrade to B1, then I think Lie-onel should be very happy for his performance in controlling DR for his two terms presidency., his performance are: high unemployment, drug floods everywhere, crime rate., corruption of the government........etc.
From: United States
actually, THINK, make that three terms of government. but, do not blame him. you get the government you deserve. the people saw his first term, and put him back in for 2 more. now they bawl. they get no Kleenex from me.
Written by: Atabey, 23 Apr 2010 3:14 PM
From: United States, NYC
We should read and remember our history more carefully. To wit, amazingly it was not until the advent of LF 2nd that the formalization or institutionalization of modern systems of operation and financial management began in the Dominican Republic. Until then, Dominican Presidents acted and functioned as semi-dictators. Budgets seldom if ever reflected the real conditions of the republic. Presidents undercounted revenues so as to hide funds for their own personal decrees. This shambolic labyrinth of disjointed governance only served to increase malfeasance and distrust across the nation. Paradoxically LF is in fact the instigator of the modern system of governance so many would want to see cemented in DR. Where transparency becomes the norm and budgets and revenue streams are not boxed in a black hole. As with all attempts at modernization, old habits die hard.
http://ec.europa.eu/europeaid/wha....ocuments/dom_republic_pefa_en.pdfWritten by: xwill7, 23 Apr 2010 5:46 PM
From: United States, El cuarto bate
based on what!
From: Dominican Republic, vieja Santo Domingo
Thanks for the re welcome and yes ,regrettably, I need ongoing treatment for a few years more ..but can have some of it in the DR ..
I rather agree with the sentiment stated above that old habits die hard when people try to change systems ..it is a hard sell ..
From: United States
it is even more complicated when the man in the street finds it entirely acceptable. my bizarre theory is similar to the one i have about tax cuts in the USA. even the poorest people in america find increases in taxation on the wealthiest classes an unpalatable idea. they could be poor as dirt, have little or no money, but they fight for the rights of the rich. my theory is that they all believe that with the myriad lotteries, casinos, and bookseller giveaways, they will some day become rich, and they do not want anybody molesting their fortunes when they do. similarly, it appears from my observations that just about everybody i know in this country is deeply mired in the political swamp. they all aspire to get sufficiently involved to the degree wherein they can wield some influence, and call some shots. they do not want anybody calling them on the carpet when they build a few mansions with taxpayer money. there, you heard it here first.
Written by: Atabey, 23 Apr 2010 9:29 PM
From: United States, NYC
http://news.bbc.co.uk/2/hi/americas/8474611.stmWhy do people vote against their own interests?
The Republicans' shock victory in the election for the US Senate seat in Massachusetts meant the Democrats lost their supermajority in the Senate. This makes it even harder for the Obama administration to get healthcare reform passed in the US.
Political scientist Dr David Runciman gives his view on why there is often such deep opposition to reforms that appear to be of obvious benefit to voters.
Written by: Atabey, 23 Apr 2010 9:35 PM
From: United States, NYC
Written by: xwill7, 23 Apr 2010 5:46 PM
From: United States, Chicago
based on what!
Read the study.
http://ec.europa.eu/europeaid/wha....ocuments/dom_republic_pefa_en.pdfIt gives you the run down on the inept system that DR has basically had for a very long time. In fact, I cannot remember reading when our nation ever had a modern financial management system.
An effective public financial management system (PFM) helps government to meet and
to balance the three interrelated objectives of budget management:
• Aggregate fiscal discipline;
• Efficient assignation of resources in line with public policy priorities;
• Operational efficiency in the management of finances and in the provision of
services.
This report presents an assessment of the PFM performance of the Dominican Republic
based on an international reference framework (Public Expenditure and Financial
Accountability - PEFA).
Written by: Atabey, 23 Apr 2010 9:36 PM
From: United States, NYC
This framework identifies six critical dimensions of public
financial management based on 28 indicators.
The dimensions are:
i. Credibility of the budget;
ii. Comprehensiveness and transparency;
iii. Policy-based budgeting;
iv. Predictability and control in budget execution;
v. Accounting, recording and reporting;
vi. External scrutiny and audit.
The main objectives of the PEFA exercise are: (i) to establish an integrated framework
which will help the Dominican government (and other interested parties) to monitor the
country’s PFM performance through time; (ii) to contribute to the modernisation process
of PFM, determining the measure in which on-going activities generate results; and (iii)
to facilitate the harmonisation of the dialogue between the government and donors based
on a common measurement and monitoring framework.
Written by: devin11, 23 Apr 2010 9:44 PM
From: United States, The Greatest City
Wow Dread, your last post was frame worthy.
These rating agencies are a scam. Did we already forget about the prime ratings that were given to the high risk A.R.M.'s even just before the market crash. How many people lost their shirts by investing in these doomed financial instruments because they were given top ratings only to find out that these scam artists were actually in bed with the same financial entities that were making the offerings.
Written by: Atabey, 23 Apr 2010 9:53 PM
From: United States, NYC
devin11,
I agree and would add that an effective public financial management system (PFM) is of the upmost importance for DR's modernization. Until our nation establishes such a system many more investors will lose their shirts.
From: United States
thank you, Devin, for your kind remarks. as for bond ratings scams, yes, we all know how that went with the derivatives markets. i have always been a fan of very high end stereo systems. i read magazines like stereophile, and the absoulte sound, when they review pieces of equipment. so, they give the XYZ Mark 2 amplifier a class a rating, gushing effusively over its ¨magnificent palpability¨, or some such reviewer buzz phrase. then , i go listen to it at a dealer, and it sounds like crap. well, it gets the high rating because the magazine principals and the manufacturer are in bed together. same thing with bond ratings, at least sometimes.
Written by: pelaut, 24 Apr 2010 8:00 AM
From: United States
Agree it's good that at least the DR has a rating.
But "The rating is in line with Mongolia, Lebanon and Suriname,” — great company compay!
From: United States
pelaut, there is an old saying which goes ¨you can know a man by the company he keeps ¨
From: Dominican Republic, vieja Santo Domingo
Never in my life have I heard before any one, with any credibility, call Moodys a scam ,,That statement is baseless .They are recognised around the world and highly respected as is S and P ..I have never heard that any reputable ratings company for bonds was a scam organisation .However if a statement is made that these companies are not always correct , then I believe that statement could be supported by evidence.
I most certainly would not be sneering about Mongolia or Lebanon ..Mongolia has a rapidly improving economy and has substantial mineral resources and the once very wealthy Lebanon is now gradually overcoming their civil problems and , providing peace can be kept , has a chance of returning to prosperity .
Dreadlock ,in a moment of unrestrained honesty , has called his theories correctly , bizarre . Now the counter punch .!!!
From: Dominican Republic, vieja Santo Domingo
I would like to comment on the taxation system in the USA and also here in the DR which I do not favour ..the flat rate of tax normally placed on consumer items but also sometimes placed all the way along the production or service lines has greatest impact on the poor . For the poor maybe they pay 30 % of their income in taxes but for the rich it may be as low as 5 % of their income .This is , of course , the opposite to income redistribution and is favoured by some governments because it is relatively easy to collect ..It is one of the main reasons why the poor get poorer and the rich get richer .In some countries ,with a greater social conscience , there is progressive taxation but here, in the DR, the taxes are avoided by the rich and they and the government have little social conscience .I would vote for any one who came forward with a sound idea to make the tax system progressive so it redistributes income to the less wealthy , even if it involved increased death duties .
From: United States
Ricardolito, my honesty has always been unrestrained. one thing i will never do is compromise my integrity. that is why i am not too popular on the board, but, so be it. opportunism and position shifting are things i do not do well.
From: United States
Yet, astoundingly, ratings agencies such as Moody’s and Standard and Poor’s (S&P) have continued to give the financially shaky companies the highest possible credit rating — AAA or Aaa — compared to the low single “A” rating given to states that never default on anything and have growing economies. That is unbelievably silly and incompetent. It is a massive scam.
From: United States
Ricardolito, i excerpted that passage from an article written by a financial periodical writer. i am amazed that you had not heard about these questionable goings on in the financial cesspool before.
Written by: MrSteve, 24 Apr 2010 1:09 PM
From: Dominican Republic
To be clear here, the DRs rating was dropped twice in two months after the Baninter fiasco.
Almost 7 years later we recover one of the two we dropped, so we're still worse off than pre 2003.
Yey! Let's celebrate our achievements! By 2017 we'll be back square with 2003 as regards rating, and all going to plan in 2024 we'll have a better rating.
Genius
Written by: Atabey, 24 Apr 2010 4:05 PM
From: United States, NYC
Mr Steve,
Please read:
http://ec.europa.eu/europeaid/wha....ocuments/dom_republic_pefa_en.pdfYes, very long overdue but it's actually starting to gain traction. As fast and profound as one would hope and wish for, no; but it's far better than all the shenanigans going ons that we've had since time immemorial. After reading this study and some others, it strikes one as incredible that DR is not worse off than its current state.
From: United States
devin, it is rather peculiar that right after you declared my posting to be worthy of framing, it mysteriously disappeared off the board. there are some posters here who find democracy to be a convenient buzzword, but have not advanced beyond the dictator stage in their real lives. they fail to understand that even if they have a personal beef with my ideas, they should at least have a modicum of common decency and allow them to be seen by others who would like the opportunity to make their own assessment. i had no idea that i was dealing with a bunch of childish, immature, spoiled brats, who refuse to grow up and act like adults, but continue to live a life of protracted adolescence. now go ahead and erase that. you cannot erase the fact that some of you are not yet evolved, and are unprepared for life in a civilised, adult world.
Written by: devin11, 24 Apr 2010 11:35 PM
From: United States, The Greatest City
Ricardolito,
Besides the obvious conflicts of interests that the rating agencies have such as being publicly traded companies who necessitate profit growth and maximization, thus the need to cut costs which automatically erodes the quality of the researched and processed information given to investors. Aside of this glaring fact, should you happen to have a few hundred or so hours to kill, please go to the Internet search engine of your choice and type in "rating agencies, financial crisis" so that you can become more aware of this extensively published information.
Written by: devin11, 24 Apr 2010 11:41 PM
From: United States, The Greatest City
Dread,
I don't have any idea what hastened the response to your postings. I would however like to go on record to say that censorship is the only way that cowards can defend and advance their own positions. It is also an admission of defeat to censor someone since the defeated cannot sustain or achieve victory through the merits of their argument.
From: United States
thank you , counsellor. my sentiments exactly. only, you say it with greater erudition. if you cannot win the argument, shut them up. really manly and adult behavior.
From: Dominican Republic, vieja Santo Domingo
My objection is the calling of Moodys and S and P a scam ....the word scam has illegal implications and there has to be some evidence before you can apply that tag to the two companies ,, just saying that staff cuts and errors of judgment have been made does not justify the word scam especially in relation to the analysis of the ratings of various countries .
I am confident , although I do not expose my self to the USA bond market, that both companies have the required disclosures if indeed there is any possible conflict of interest .
The errors of judgment made in the sub prime mortgage market were made by many people but errors in judgment are not a scam . I think that the Moodys ratings strongly weigh on peoples assessments of alternative investments and as been pointed out by Mr Steve the rating of the DR is improving and the cost of borrowing by the DR on the bond market will decline as the ratings improve.
Written by: devin11, 25 Apr 2010 12:57 PM
From: United States, The Greatest City
Ricardolito,
I am well aware of the definition of the word scam and I stand by my assertion of it's use regarding the rating agencies. Please pay special attention to the second article which cites a memo from a Moody's employee to a Chase Bank Exec., were the Moody's employee states that he will change the ratings methodology in order to reflect a more favorable result for the Chase Bank offering. Would you not refer to that as a SCAM? There was incompetence because of the cost cutting measures that I referred to as a publicly traded company must show profit growth but more importantly there was a systematic approach to overvalue volatile financial instruments for financial or favorable gain and that makes it a SCAM.
http://news.firedoglake.com/2010/....ud-at-the-credit-rating-agencies/http://m.industry.bnet.com/financ....-helped-cause-the-housing-bubble/ Written by: xwill7, 26 Apr 2010 10:46 AM
From: United States, El cuarto bate
atabey,
I can not believe every credit rating report out there
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Long-term obligation ratings
Investment grade
Aaa
Moody judges obligations rated Aaa to be the highest quality,[7] with the "smallest degree of risk".[8]
Aa1, Aa2, Aa3
Moody judges obligations rated Aa to be high quality, with "very low credit risk",[7] but "their susceptibility to long-term risks appears somewhat greater".[8]
A1, A2, A3
Moody judges obligations rated A as "upper-medium grade", subject to "low credit risk",[7] but that have elements "present that suggest a susceptibility to impairment over the long term".[8]
Baa1, Baa2, Baa3
Moody judges obligations rated Baa to be "moderate credit risk".[7] They are considered medium-grade and as such "protective elements may be lacking or may be characteristically unreliable".[8]
Speculative grade (Also known as High Yield or 'Junk')
Ba1, Ba2, Ba3
Moody judges obligations rated Ba to have "questionable credit quality."[8]
B1, B2, B3
Moody judges obligations rated B as spe
Moody judges obligations rated Ba to have "questionable credit quality."[8]
B1, B2, B3
Moody judges obligations rated B as speculative and "subject to high credit risk",[7] and have "generally poor credit quality."[8]
Caa1, Caa2, Caa3
Moody judges obligations rated Caa as of "poor standing and are subject to very high credit risk",[7] and have "extremely poor credit quality. Such banks may be in default..."[8]
Ca
Moody judges obligations rated Ca as "highly speculative"[7] and are "usually in default on their deposit obligations".[8]
C
Moody judges obligations rated C as "the lowest rated class of bonds and are typically in default,"[7] and "potential recovery values are low".[8]
Special
The economic news for the DR keeps improving although most would like to see a better distribution of the increasing wealth, the Moodys improved rating is good news ,,there are many reputable companies listed on stock exchanges that have a rating that Moodys call below investment grade and of course there has to be a degree of speculation in Dominican bonds..this may not be because of the immediate economic situation but simply because latin politics and changing governments are somewhat erratic and variable.
I have been amazed to see ,now I am up and about ,the enormous progress in civil construction in the east , the capital and parts of the north...new bridge , new roads , new water pipes .
The emphasis on infrastructure improvements may not be to everyone´s taste but I have also seen many new books at the schools I have visited .
In summary to further explain the Moody's credit rating for DR:
If the rating is lower (or worse ) than Bbb., which means the investment is not a good deal.
If DR is happy the rating from B2 upgrade to B1, then I think Lie-onel should be very happy for his performance in controlling DR for his two terms presidency., his performance are: high unemployment, drug floods everywhere, crime rate., corruption of the government........etc.
http://ec.europa.eu/europeaid/wha....ocuments/dom_republic_pefa_en.pdf
I rather agree with the sentiment stated above that old habits die hard when people try to change systems ..it is a hard sell ..
Why do people vote against their own interests?
The Republicans' shock victory in the election for the US Senate seat in Massachusetts meant the Democrats lost their supermajority in the Senate. This makes it even harder for the Obama administration to get healthcare reform passed in the US.
Political scientist Dr David Runciman gives his view on why there is often such deep opposition to reforms that appear to be of obvious benefit to voters.
From: United States, Chicago
based on what!
Read the study. http://ec.europa.eu/europeaid/wha....ocuments/dom_republic_pefa_en.pdf
It gives you the run down on the inept system that DR has basically had for a very long time. In fact, I cannot remember reading when our nation ever had a modern financial management system.
An effective public financial management system (PFM) helps government to meet and
to balance the three interrelated objectives of budget management:
• Aggregate fiscal discipline;
• Efficient assignation of resources in line with public policy priorities;
• Operational efficiency in the management of finances and in the provision of
services.
This report presents an assessment of the PFM performance of the Dominican Republic
based on an international reference framework (Public Expenditure and Financial
Accountability - PEFA).
financial management based on 28 indicators.
The dimensions are:
i. Credibility of the budget;
ii. Comprehensiveness and transparency;
iii. Policy-based budgeting;
iv. Predictability and control in budget execution;
v. Accounting, recording and reporting;
vi. External scrutiny and audit.
The main objectives of the PEFA exercise are: (i) to establish an integrated framework
which will help the Dominican government (and other interested parties) to monitor the
country’s PFM performance through time; (ii) to contribute to the modernisation process
of PFM, determining the measure in which on-going activities generate results; and (iii)
to facilitate the harmonisation of the dialogue between the government and donors based
on a common measurement and monitoring framework.
These rating agencies are a scam. Did we already forget about the prime ratings that were given to the high risk A.R.M.'s even just before the market crash. How many people lost their shirts by investing in these doomed financial instruments because they were given top ratings only to find out that these scam artists were actually in bed with the same financial entities that were making the offerings.
I agree and would add that an effective public financial management system (PFM) is of the upmost importance for DR's modernization. Until our nation establishes such a system many more investors will lose their shirts.
But "The rating is in line with Mongolia, Lebanon and Suriname,” — great company compay!
I most certainly would not be sneering about Mongolia or Lebanon ..Mongolia has a rapidly improving economy and has substantial mineral resources and the once very wealthy Lebanon is now gradually overcoming their civil problems and , providing peace can be kept , has a chance of returning to prosperity .
Dreadlock ,in a moment of unrestrained honesty , has called his theories correctly , bizarre . Now the counter punch .!!!
Almost 7 years later we recover one of the two we dropped, so we're still worse off than pre 2003.
Yey! Let's celebrate our achievements! By 2017 we'll be back square with 2003 as regards rating, and all going to plan in 2024 we'll have a better rating.
Genius
Please read: http://ec.europa.eu/europeaid/wha....ocuments/dom_republic_pefa_en.pdf
Yes, very long overdue but it's actually starting to gain traction. As fast and profound as one would hope and wish for, no; but it's far better than all the shenanigans going ons that we've had since time immemorial. After reading this study and some others, it strikes one as incredible that DR is not worse off than its current state.
Besides the obvious conflicts of interests that the rating agencies have such as being publicly traded companies who necessitate profit growth and maximization, thus the need to cut costs which automatically erodes the quality of the researched and processed information given to investors. Aside of this glaring fact, should you happen to have a few hundred or so hours to kill, please go to the Internet search engine of your choice and type in "rating agencies, financial crisis" so that you can become more aware of this extensively published information.
I don't have any idea what hastened the response to your postings. I would however like to go on record to say that censorship is the only way that cowards can defend and advance their own positions. It is also an admission of defeat to censor someone since the defeated cannot sustain or achieve victory through the merits of their argument.
I am confident , although I do not expose my self to the USA bond market, that both companies have the required disclosures if indeed there is any possible conflict of interest .
The errors of judgment made in the sub prime mortgage market were made by many people but errors in judgment are not a scam . I think that the Moodys ratings strongly weigh on peoples assessments of alternative investments and as been pointed out by Mr Steve the rating of the DR is improving and the cost of borrowing by the DR on the bond market will decline as the ratings improve.
I am well aware of the definition of the word scam and I stand by my assertion of it's use regarding the rating agencies. Please pay special attention to the second article which cites a memo from a Moody's employee to a Chase Bank Exec., were the Moody's employee states that he will change the ratings methodology in order to reflect a more favorable result for the Chase Bank offering. Would you not refer to that as a SCAM? There was incompetence because of the cost cutting measures that I referred to as a publicly traded company must show profit growth but more importantly there was a systematic approach to overvalue volatile financial instruments for financial or favorable gain and that makes it a SCAM.
http://news.firedoglake.com/2010/....ud-at-the-credit-rating-agencies/
http://m.industry.bnet.com/financ....-helped-cause-the-housing-bubble/
I can not believe every credit rating report out there