S&P affirms ‘stable outlook’ for IoM with 'AAA' rating

  • mikepapa
  • 10/10/08 n/a (free)
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Posted: Mon, 15/12/2008 - 13:03

This story is a few days old - forgive me if it has been posted elsewhere on the site, however I have not seen it.

Link: http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=178140&d=340&h=341&f...

S&P affirms ‘stable outlook’ for IoM with 'AAA' rating

S&P says the failure of KSF IoM suggests an increase in the government's contingent liabilities due to funding requirements of the local depositor compensation.

Mrsnik says: "The stable outlook reflects our expectation that, over the medium term, the Isle of Man government's overall robust financial position and policy flexibility should enable the Isle to weather the ongoing challenges in the global economic environment.

Please read the full story.

Personally I do not think IoM deserve an AAA Rating until our deposits are returned 100%!!

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NB: Above also posted as News Item

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It is not the Isle of Man's fault!!!

  • Gutted
  • 12/10/08 31/05/09
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  • Wed, 17/12/2008 - 09:32

Let's get 1 thing straight - this is not the Isle of Man's fault!!

This is the fault of the UK Government and Iceland.

I live in the Isle of Man and I fail to see how it is the fault of the Island?

I'm just as angry as everyone else as I want my money back but do not blame the Isle of Man for this.

The Island is a strongly regulated and financially sound place to be.


No, it isn't the Isle's fault, but...

  • sami
  • 10/10/08 31/05/09
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  • Wed, 17/12/2008 - 10:01

It is not the Isle of Man's fault, but where does possible blame come into the rating of an institution or jurisdiction?

If one wanted to deposit or invest in a jurisdiction, then the rating would be a reflection of risk. In Kaupthing's case, the Icelandic banking system presented a risk to the Isle of Man, and that risk needed to be reflected in the ratings.

Put another way, depositors in the UK-based institutions which have failed, have been fully compensated, irrespective of the financial position of those institutions. But Isle of Man have not done so.

This is a question of risk in the Isle of Man. And the S&P rating is not taking that factor into account.

Risk is always a factor and possibly one which all of us on this site will look at differently from now on. Although the Isle is strongly regulated and financially sound, is that a comfort to us now, given that our fellow savers in KS London are to be fully compensated?


Not IOMs Fault - Ring Fenced

  • dclf1947
  • 10/10/08 31/08/09
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  • Wed, 17/12/2008 - 09:48

If the 550M+ deposit put into KSF UK was ring fenced we would not have a major problem. It was the IOM Treasury who should have ensured this, if I remember "they thought it was" but obviously it wasn't!!!


Lets think about this

  • Bill
  • 13/10/08 n/a (free)
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  • Mon, 15/12/2008 - 19:29

While the IoM is trying to get a solution for us, lets support them. They need to be credible to survive- and surely we can do damage here but what we want is a win win situation. I say lets work with the IoM while they are working with us.

Of course if we do not realize 100% then we really are THE example of why IoM should not be AAA then we should all write to all the rating agencies - but not yet.


Contact S&P

  • mikeinfrance
  • 12/10/08 28/09/09
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  • Mon, 15/12/2008 - 17:54

mike papa..I'd tend to agree with your comment.
Here's a link to the S&P contact page for those who might wish to make their feelings known to S&P, Perhaps also a press release to them?:

http://www2.standardandpoors.com/portal/site/sp/en/us/page.contactus/con...

or just e-mail your question/comment to:

questions(?)standardandpoors [dot] com


S&P contact update

  • mikeinfrance
  • 12/10/08 28/09/09
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  • Mon, 15/12/2008 - 18:13

just tried to edit my post to change the link from US site to europe site but was too late.Here is a link to the european site:

http://www2.standardandpoors.com/portal/site/sp/en/eu/page.contactus/con...

e-mail address for questions remains the same:

questions(?)standardandpoors [dot] com


contact S&P

  • manx-person
  • 17/10/08 31/05/09
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  • Mon, 15/12/2008 - 18:04

Just a thought - say (hypothetically) the IoM was looking to obtain run-off finance to deal with a time mismatch on the recoveries from KSFUK and a payout to depositors.

Don't you think it would increase the chances of obtaining such finance if the IoM had a good credit rating?

Just a thought..........


Are they the same agency that

  • expatfrance1
  • 15/10/08 31/05/09
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  • Mon, 15/12/2008 - 17:51

Are they the same agency that gave Kaupthing a 'AAA' rating?

So long IOM then!