Financial Loss – Car Insurance In Memphis http://carinsuranceinmemphis.net/ Mon, 21 Nov 2022 23:30:11 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://carinsuranceinmemphis.net/wp-content/uploads/2021/06/icon-1.png Financial Loss – Car Insurance In Memphis http://carinsuranceinmemphis.net/ 32 32 Research: Rating Action: Moody’s confirms RCI Banque’s ratings and changes the outlook from negative to stable https://carinsuranceinmemphis.net/research-rating-action-moodys-confirms-rci-banques-ratings-and-changes-the-outlook-from-negative-to-stable/ Mon, 21 Nov 2022 23:30:11 +0000 https://carinsuranceinmemphis.net/research-rating-action-moodys-confirms-rci-banques-ratings-and-changes-the-outlook-from-negative-to-stable/ Paris, November 22, 2022 — Moody’s Investors Service (“Moody’s”) today affirmed RCI Banque’s (RCI) long-term deposit and senior unsecured debt rating at Baa2, the credit assessment of bank’s base (BCA) and adjusted BCA to ba1, its subordinated debt rating of Ba2, its long-term counterparty risk rating (CR) and its long-term counterparty risk rating (CRR) to […]]]>

Paris, November 22, 2022 — Moody’s Investors Service (“Moody’s”) today affirmed RCI Banque’s (RCI) long-term deposit and senior unsecured debt rating at Baa2, the credit assessment of bank’s base (BCA) and adjusted BCA to ba1, its subordinated debt rating of Ba2, its long-term counterparty risk rating (CR) and its long-term counterparty risk rating (CRR) to Baa1 (cr) and Baa1 respectively. The outlook on long-term senior unsecured debt and deposit ratings was changed from negative to stable.

This action was prompted by the affirmation of the corporate family rating (CFR) of RCI’s parent company, Renault SA (Renault) at Ba2, and the change of outlook from stable to negative. For more details, please see Moody’s press “Moody’s changes Renault outlook from stable to negative, confirms Ba2 ratings” (https://www.moodys.com/research/–PR_471465) published on November 18, 2022.

A list of all affected ratings is provided at the end of this press release.

RATINGS RATIONALE

The confirmation of the Baa2 rating of RCI’s long-term deposits and senior unsecured debt reflects (1) the bank’s ba1 BCA and adjusted BCA; and (2) two notches up in the Advanced Loss Given Failure (LGF) analysis, resulting from the large volume of long-term senior unsecured debt leading to a very low expected loss rate on these instruments.

RCI’s ba1 BCA is supported by the bank’s role as a key strategic arm of Renault and its strong financial fundamentals, including strong profitability throughout the credit cycle, moderate asset risk and capitalization. commensurate with its risk profile.

At the same time, the BCA is constrained by the lack of diversification of the bank’s business and exposures to car dealerships, which accounted for 15% of the bank’s loan portfolio at the end of June 2022. In addition, Moody’s takes into account the RCI’s heavy reliance on wholesale funding, although the loan portfolio is funded to a large extent by long-term liabilities, resulting in low rollover risk. In addition, the bank has over time expanded its online deposits, which currently represent 46% of its funding needs.

OUTLOOK

Moody’s believes that the improvement in the solvency of its parent company will benefit RCI’s fundamentals because RCI is an integral part of the automaker’s business model. However, RCI’s BCA is unlikely to top Renault’s rating by more than a notch, as it does for most other rated automotive captives. The stable outlook for RCI’s long-term and senior unsecured deposit ratings therefore results from the stable outlook for Renault’s rating, reflecting the intrinsic links between the two companies.

FACTORS THAT MAY LEAD TO IMPROVEMENT OR DEGRADATION OF RATINGS

Factors that can lead to an upgrade

RCI’s BCA could be upgraded due to a revaluation of its parent company Renault assuming that its solid solvency profile is maintained. An improvement in RCI’s BCA would likely lead to an improvement in the rating of its long-term debt and deposits.

Factors that may lead to a downgrade

Due to the intrinsic links between the captive and its automotive parent company, RCI’s ratings are highly dependent on Renault’s solvency. Therefore, a downgrade of Renault would likely result in a similar action on RCI’s ratings. A downgrade in RCI’s ratings could also result from a substantial deterioration in the quality of the bank’s assets and profitability. A substantial reduction in outstanding senior unsecured debt could lead to a higher expected loss on this instrument, and in turn would lead to a rating downgrade.

LIST OF AFFECTED RATINGS

Issuer: RCI Banque

..Affirmations:

….Long Term Counterparty Risk Ratings, Baa1 Confirmed

….Short Term Counterparty Risk Ratings, Confirmed P-2

….Long-term bank deposits, Baa2 confirmed, outlook changed from negative to stable

….Short-term bank deposit rating, confirmed P-2

….Long Term Deposit Notes/CD Program, Confirmed (P)Baa2

….Short-term deposit note/CD program, confirmed P-2

….Assessment of long-term counterparty risk, confirmed Baa1(cr)

….Assessment of short-term counterparty risk, confirmed P-2(cr)

….Basic credit rating, confirmed ba1

….Base credit rating adjusted, confirmed ba1

….Senior Unsecured Regular Bond/Debenture, confirmed Baa2, outlook changed from negative to stable

….Senior Unsecured Medium Term Note Program, Confirmed (P)Baa2

…. Ordinary Subordinated Bond/Debenture, Confirmed Ba2

….Subordinated medium-term note program, confirmed (P)Ba2

….Commercial Paper, confirmed P-2

….Other short term, confirmed (P)P-2

..Outlook action:

….The outlook has changed from stable to negative

Issuer: RCI Banque Sucursal Argentina

..Affirmation:

….Long-term issuer rating, confirmed Caa1, outlook changed from negative to stable

..Outlook action:

….The outlook has changed from stable to negative

MAIN METHODOLOGY

The main methodology used in these ratings is the Methodology for Banks published in July 2021 and available on https://ratings.moodys.com/api/rmc-documents/71997. Otherwise, please see the Scoring Methodologies page on https://ratings.moodys.com for a copy of this methodology.

REGULATORY INFORMATION

For details on key rating assumptions and Moody’s sensitivity analysis, see the Methodological Assumptions and Sensitivity to Assumptions sections in the Disclosure Form. Moody’s rating symbols and definitions can be found at https://ratings.moodys.com/rating-definitions.

For ratings issued on a program, series, category/class of debt or security, this announcement provides certain regulatory information regarding each rating of a subsequently issued bond or note of the same series, category/class of debt, security or under a program for which ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a media provider, this announcement provides certain regulatory information relating to the credit rating action on the media provider and each particular credit rating action for securities whose credit ratings are derived from the support provider’s credit rating. For the provisional ratings, this press release provides certain regulatory information relating to the provisional rating assigned, and to a final rating that may be assigned after the final issuance of the debt, in each case where the structure and conditions of the transaction n have not changed prior to the final rating being assigned in a way that would have affected the rating. For more information, please see the issuer/transaction page of the respective issuer at https://ratings.moodys.com.

For all relevant securities or rated entities receiving direct credit support from the lead entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action , the associated regulatory information will be that of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to the jurisdiction: Ancillary services, Disclosures to the rated entity, Disclosures to be provided by the rated entity.

The ratings have been disclosed to the rated entity or its designated agent(s) and issued without modification as a result of such disclosure.

These notes are solicited. Please refer to Moody’s Policy for the Designation and Assignment of Unsolicited Credit Ratings available on its website. https://ratings.moodys.com.

The regulatory information contained in this press release applies to the credit rating and, if applicable, the outlook or rating revision relating thereto.

Moody’s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis are available at https://ratings.moodys.com/documents/PBC_1288235.

The worldwide credit rating on this credit rating announcement has been issued by one of Moody’s affiliates outside the UK and is approved by Moody’s Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the United Kingdom. . Further information on the UK endorsement status and the Moody’s office that issued the credit rating can be found at https://ratings.moodys.com.

Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and Moody’s legal entity that issued the rating.

Please see the issuer/transaction page at https://ratings.moodys.com for additional regulatory information for each credit rating.

Roland Auquier
Vice President – Senior Analyst
Financial Institutions Group
Moody’s France SAS
96 Boulevard Haussmann
Paris, 75008
France
JOURNALISTS: 44 20 7772 5456
Customer service: 44 20 7772 5454

Alain Laurine
Associate General Manager
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Customer service: 44 20 7772 5454

Release Office:
Moody’s France SAS
96 Boulevard Haussmann
Paris, 75008
France
JOURNALISTS: 44 20 7772 5456
Customer service: 44 20 7772 5454

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COP27: Scale of loss, damage undeniable, parties must act https://carinsuranceinmemphis.net/cop27-scale-of-loss-damage-undeniable-parties-must-act/ Fri, 18 Nov 2022 18:48:07 +0000 https://carinsuranceinmemphis.net/cop27-scale-of-loss-damage-undeniable-parties-must-act/ United Nations Secretary-General Antonio Guterres said the scale of “loss and damage” caused by the devastating effects of climate change across the globe is undeniable to anyone and that “all parties should show that they see”. The UN official disclosed this during his address at the COP27 monitoring event on Thursday, according to a statement […]]]>

United Nations Secretary-General Antonio Guterres said the scale of “loss and damage” caused by the devastating effects of climate change across the globe is undeniable to anyone and that “all parties should show that they see”.

The UN official disclosed this during his address at the COP27 monitoring event on Thursday, according to a statement from the organizers.

“No one can deny the scale of loss and damage we are seeing around the world. The world is burning and drowning before our eyes,” Mr. Guterres said.

He said world leaders cannot continue to “deny climate justice to those who have contributed least to the climate crisis (Africa) and who are most affected”.

“Now is the time for solidarity,” he added.

Ongoing concerns

During United Nations Climate Change Conference (COP27) in Egypt, one of the main agendas brought to the negotiating table by the African Group of Negotiators (AGN), including Nigeria, is “loss and damage” which emphasizes compensation finance of ravaged nations.

This, they say, will help compensate powerless African countries that contribute less than 4% to global emissions to scale up adaptation and mitigation efforts to address the continuing scourge of climate change on the continent.

However, as the two-week summit draws to a close in less than 24 hours, African negotiators have expressed concern over the lack of progress on loss and damage in the negotiating room.

The group said the position of Africans is not a contest of vulnerability, but COP decisions have recognized Africa, and science hints that Africa is a continent with complex challenges. overlapping, and that many generations of Africans have been left behind and are suffering. consequences of actions not of their making.


“We are concerned about the lack of progress on various issues important to our group, including financing, adaptation and loss and damage. However, with a few days remaining, we believe we can still deliver all work streams, including adaptation, loss and damage, mitigation and means of implementation,” the group said on Tuesday.

According to the group of African negotiators, Africa has the lowest historic and current emissions, noting that AR6 also estimates that adaptation costs in developing countries will reach $127 billion, which Africa needs up to $86.5 billion per year by 2030,” the statement quoted.

Breakdown of “trust”

Amid such lingering concerns, Mr Guterres said there was clearly a “break in trust” between North and South and between developed and emerging economies.

He said: “We are at a crucial moment in the negotiations.

“COP27 is due to close in 24 hours – and parties remain divided on a number of important issues. Now is not the time to point fingers. The blame game is a recipe for mutually assured destruction.

The UN boss called on all parties to rise to this moment and the greatest challenge facing humanity because the world is watching and his simple message to all parties is to “stand and deliver” meaningful climate action that people and the planet so desperately need.

“Highest Global Emissions Ever Recorded”

Mr. Guterres lamented that global emissions are at an all-time high, which continues to rise, and that climate impacts are decimating economies and societies.

“We know what we need to do — and we have the tools and the resources to do it. And so I call on the parties to act in three critical areas,” he said.

Go forward

Guterres said the most effective way to restore confidence is to find an ambitious and credible agreement on loss and damage and financial support for developing countries.

He said the time for discussion of loss and damage funding is over.

“We need action,” he reiterated, urging all parties to show they see it and get it, and to send a clear signal that the voices of those on the frontlines of the crisis are finally heard.

“Reflect the urgency, scale and enormity of the challenge facing developing countries,” Mr. Guterres said.

Likewise, he called on all parties to forcefully tackle the huge emissions gap.

He said the Global Goal of 1.5 is not just about keeping a goal alive, it’s about keeping people alive.

“I see the will to stick to the 1.5 target – but we need to ensure that this commitment is evident in the outcome of COP27,” he noted.


READ ALSO : COP27: African negotiators concerned about lack of progress in negotiations on loss and damage


He said, “Fossil fuel expansion is distracting humanity.”

“Any hope of reaching the 1.5 target requires a step change in emissions reductions. We cannot close the emissions gap without accelerating the deployment of renewable energy.

Energetic transition

Regarding the just energy transition measures taken by the parties, Mr. Gutterres said that partnerships are important pathways to accelerate the phase-out of coal and the scaling up of renewable energy and that these efforts must be expanded.

More generally, he noted the need to continue pushing for a Climate Solidarity Pact – a pact with developed countries taking the lead in reducing emissions and a pact to mobilize – with international financial institutions and the private sector, financial and technical support to emerging economies to accelerate their transition to renewable energy.

This, according to Mr Guterres, is key to keeping the 1.5 degree target within reach and that renewables are the exit ramp from the highway to climate hell.

$100 billion climate finance

The UN secretary-general said parties must act on the critical issue of finance, and that means providing $100 billion in climate finance to developing countries.

Furthermore, he said, it means clarity on how the doubling of adaptation finance will be delivered through a credible roadmap.

“They must provide the support developing countries need to embark on a renewable and climate-resilient energy pathway,” he added.

He said: “We have agreed on the solutions available to us – to respond to loss and damage, to close the emissions gap and to secure funding. The climate clock is ticking and trust continues to erode.

“Parties at COP27 have a chance to make a difference – here and now. I urge them to act – and act quickly,” Mr. Guterres said.


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Circle Marks Possible $3 Billion Loss From Binance Stable Coin Conversions https://carinsuranceinmemphis.net/circle-marks-possible-3-billion-loss-from-binance-stable-coin-conversions/ Wed, 16 Nov 2022 06:22:55 +0000 https://carinsuranceinmemphis.net/circle-marks-possible-3-billion-loss-from-binance-stable-coin-conversions/ Circle, the company behind the issuance of USDC Coin (USDC) said recent events caused him to miscalculate his financial projections – referring to the collapse of FTX and a move by rival exchange Binance. In September, crypto exchange Binance announced that it automatically convert USDC to its own stablecoin Binance USD (BUSD), the past week […]]]>

Circle, the company behind the issuance of USDC Coin (USDC) said recent events caused him to miscalculate his financial projections – referring to the collapse of FTX and a move by rival exchange Binance.

In September, crypto exchange Binance announced that it automatically convert USDC to its own stablecoin Binance USD (BUSD), the past week has seen the collapse of FTX.

Circle’s erroneous projection for 2022 was noted in its amended S-4 registration statement which was deposit to the United States Securities Exchange Commission (SEC) on November 14.

The S-4 is a registration statement is a document that companies complete and submit to the SEC before merging or taking over another company or making an exchange offer.

Circle noted that while they were unable to assess how much of a role Binance’s automatic conversion of USDC to BUSD played in lowering USDC circulation, they did. observed an increase of approximately $3 billion in BUSD from August 17 to September 30, the company adding:

“We estimate that up to $3.0 billion of the $8.3 billion USDC decline in circulation from June 30, 2022 to September 30, 2022 was driven by automatic conversion by Binance.”

The stablecoin issuer added that the additional USDC$13.5 billion issued since June 30 represents a 36% reduction from 2021.

The first S-4 filing was submitted to the SEC in August 2021, in which Circle planned to merge with capital markets firm Concord Acquisition. However, Concord has decided to postpone the merger to October 2022 until “no later than January 31, 2023”.

With respect to its business partnership with FTX, Circle has historically provided payment processing services for FTX by issuing the now-bankrupt trading platform with USDC and being a client of Circle’s Payments API at during the last 18 months, according to Circle CEO and Co-Founder Jeremy Allaire.

The stablecoin issuer said the financial impact FTX has had on its balance sheet will not be greater than its $10.6 million equity investment, which it will formally process during the next reporting period. .

“The company has suspended its services and transactions with FTX Group and is in the process of assessing the impact on the provision of future services to FTX Group and the potential indirect financial impact of the bankruptcy of FTX Group,” the statement said. case.

Related: Crypto Circle stablecoin issuer adds support for Apple Pay

The $10.6 million figure comes as Allaire confirmed in an 11-part Twitter thread on Nov. 9 that Circle only holds a “tiny” stake in FTX, which represented “no material exposure” to the company balance sheet:

Go too added that “Circle has never made loans to FTX or Alameda, and has never received FTT as collateral, and has never held a position or traded in FTT.”