Springer Investor Services LLC - Professionalism/Integrity/Honesty

[Danzig]

SPRINGER
Investor Services LLC ©

Springer Investor Services LLC was founded in 1953 by Israel "Izzy" Springer (1910-1979), a merchant and banker who sought to provide investors and the generally interested public of Danzig and the world with a definitive and thorough rating of companies and sovereign credit status. In terms of size, Shaw-Sterling is our major competitor but Springer is not listed on a stock exchange to ensure neutrality and prevent shareholder interventionism. We pride ourselves in our extensive reports, our professionalism, our integrity and above all, our long tradition of honesty and and transparency to our clients and readers. We reach a global audience with our reports and analysis, so it comes standard that our research team is of impeccable standing within the Danzig financial community. In January of every year, we put all our currently rated sovereigns on renewed review to provide our clients with the most up-to-date information available.

Instead of AAA ratings, Springer uses an alternative model based on an index of 0 to 100. A nation scoring 100 on the index means it has the highest possible rating and is extremely well funded in terms of bond issue, government spending and the like. The lower on the scale, the more insecure public debt becomes and a higher risk for investors. Nations rated 5 or lower are in default. 0 Indicates the country is no longer a sovereign; rather, a protectorate or has simply ceased to exist. Credit Watch: POSITIVE means a sovereign or company is likely to receive an increased rating. NEUTRAL means no major moves are to be expected and NEGATIVE means the sovereign or company will receive a lower rating.

81 - 100: Highest standing. No credit risk, stable economy, outlook remains positive throughout.
61 - 80: Excellent standing. Very low credit risk, some minor policy adjustments may be required but highly positive.
41 - 60: Good standing. Low credit risk, medium policy adjustments may be required and outlook is generally good.
21 - 40: Neutral standing. Medium credit risk but major policy adjustments are required and outlook depends on current economic climate.
11 - 20: Poor standing. High credit risk, chances of default and politically difficult to implement policy. Inefficient government and outlook is negative.
6 - 10: Deplorable standing. Extreme credit risk with a high chance of default or partial default. Inefficient government, untendable political situation.
0 - 5: Defaulted on (all) debts, government no longer functional, country on verge of economic collapse. Rating 1 means economic collapse has taken place.

Springer Investor Services LLC
1015 The Baron's Way, 19th floor
Burrough of Taft
Danzig, Danzig

Sovereigns Ratings & Outlook

Credit Watch: POSITIVE​ Engellex - 84.5 Breotonia - 87 Danmark - 86 Uusimaa - 78.75 Altai - 47

Credit Watch: NEUTRAL​ Oikawa - 81.75 Danzig - 90 Eiffelland - 88.5 Kyiv - 72 Franken - 60.5 Zalonarus - 50 Warre - 2 Bantyr - 2 Havenshire - 21 Hajr - 73.5 Jurzan - 69 Carentania - 51.75

Credit Watch: NEGATIVE​ Wiese - 32.25 Aresura - 37.5 Altai - 28 Europaland - 38 Lesser Sarmatia - 52 Suonia - 21.5 Talemantine Empire - 78 Suonia - 9 Montelimar - 1.75

OOC: If people feel something is totally wrong or have some information I've overlooked (likely) please send me a PM and what you think your rating should be to prevent further misunderstandings.

 

[Danzig]

SPRINGER
Investor Services LLC ©

Yesterday Breotish agency Shaw-Sterling has decreased the prospects of a Wiese public debt and government finance recovery by downgrading the sovereign from BB to CCC; in our view Wiese remains in category of 21-40 with heavy downward pressure currently building. However, we tend not to follow Shaw-Sterling in its assessment just yet. We believe the Wiese government has explaining to do before we start to analyze the situation and make a final decision. What we request is the following: the full set of numbers from the Imperial Treasury as well as the methodology to calculate these numbers. According to our own research department, we find it difficult to believe Wiese will end fiscal year 2012 with `a healthy surplus', given the extreme economic environment they are in. 2011 also ended in surplus, but several market paricipants have cast doubt on these numbers; in our opinion we do not follow rumor and hearsay hence why we made our request to the Wiese Treasury. These numbers will prove to be critical in our assessment; for whatever reason if these cannot be released to the public then we will draw our conclusions from it. As of today, if nothing changes, we believe Wiese's rating (currently 32.25 on Credit Watch: NEGATIVE) may go from `Neutral Standing' to `Poor Standing'.​

 

[Danzig]

SPRINGER
Investor Services LLC ©

Citing stronger than expected demand for Altai government bonds, Altai have auctioned off $1 billion worth of government debt without problems. Many nations and banks have shown interest and so bid to cover (substantially higher than comparable bids) was a sign of growing confidence in Altai. For that reason, Springer has decided to raise the outlook of Altai and place it in Credit Watch: POSITIVE. Before we assign a higher rating to Altai, we must wait for several other government debt auctions as well as numbers about the economy after the war. We are optimistic about short to medium term policy but longterm remains more uncertain.​

 

[Danzig]

SPRINGER
Investor Services LLC ©

»» Suonia has announced economic reforms to counter the string bad news currently hitting the financially embattled country. While in our view this is excellent nows and promising, we remain reluctant to put Suonia under renewed review. Especially the comments about central bank intervention in the currency markets to influence Kronor exchange rate sounds troublesome and we wonder how the Suonian central bank is able to influence currency markets. In our opinion (direct) government intervention in markets is a sign of capitulation problems in the country may not be easily resolved using traditional, conventional measures.

»» Strong interest for Carentanian bond auction worth 10 billion thalers leads us to believe Carentania's international relation with investors is better than expected and the country will be placed under renewed review. We will await bond auction results and, amongst other factors, will base our future decision on it. What is also a contributing factor to our optimism about Carentania is the cancellation of Kyiv's military base in Talemantros, greatly reducing tension in the area.​

 

[Danzig]

SPRINGER
Investor Services LLC ©

»» Springer believes the independence of Zalonarus from Altai will have a positive effect on the finances of Talemantros. After the formal ending of the war, Springer is increasingly optimistic about Himyar, given the strong performance of Carentania in international bondmarkets. Zalonarus remains in difficulty though and attracting foreign capital will be key to develop its industrial base and expand services abroad.

»» Following better than expected news from Wiese, Springer is inclined to remove Wiese from Credit Watch: NEGATIVE and place it in category Credit Watch: NEUTRAL. We believe this is justified after several factors affecting the Wiese economy have stabilized, the government has promised tough reforms and investment from non-government sources is increasing, according to our numbers. We do however worry about some matters of poor transparency remaining, but this will not have an adverse effect on our rating decision.

»» Europaland remains the target of international attention after the embassy debacle - we refrain from taking a political side in this conflict - but it is clear to us and many global investors that confidence in Europaland has taken a hit. After a survey around 100 noted economists and analysts worldwide, consensus is Europaland is not as safe a place to invest as perceived before the embassy debacle. Europaland is already on Credit Watch: NEGATIVE but no immediate downgrade is to be expected. We hereby reaffirm our position.[/INDENT]