#credit-rating

#credit-rating

For the first time in financial history, a major credit rating agency has formally evaluated a company built on a bitcoin-backed credit model. In news covered by Bitcoin Magazine, the S&P Global Ratings has assigned Strategy Inc (MSTR) a 'B-' Issuer Credit Rating with a Stable outlook, recognizing not just the company, but the emergence of Bitcoin as collateral inside the credit system. This marks a watershed moment for corporate finance.Bitcoin-backed credit is no longer theoretical. It is now a rated financial reality.

The figure amounts to roughly $111,000 of debt for every person in the US, and is equivalent to the value of the economies of China, India, Japan, Germany and the United Kingdom combined, according to the Peter G Peterson Foundation, a Washington, DC-based think tank.

A cut to France's credit rating by S&P Global is "a wake-up call" for the country to pass a 2026 budget, Economy Minister Roland Lescure said Saturday. "This is an additional cloud to a weather report that is already quite grey" in terms of France's economic outlook, he told Franceinfo radio. France, with one of the largest debt piles among European Union countries, is in the midst of a political impasse over the budget, which has so far failed to pass through a divided parliament.

Fitch cited CCM's strong market share in the distributed retail channel, solid operating track record, experienced management team and conservative leverage as credit strengths. The company ranked as the eighth-largest lender in the first half of 2025, with $23.05 billion in originations, according to Inside Mortgage Finance. But Fitch also flagged challenges, including exposure to cyclical mortgage market conditions, reliance on secured short-term wholesale funding, regulatory risk tied to Ginnie Mae loans and key personnel risk related to majority shareholder Ron Leonhardt.

Moody's said late last week that the OpenAI "contract size is staggering - highlighting the tremendous potential for Oracle's AI Infrastructure. However, the related risks of the build are significant." It pointed to the significant "counterparty risk" in Oracle's projected growth - the possibility that another party fails to meet its obligations. "Counterparty risk is always a key consideration in any type of project financing, particularly where there is a high reliance on revenue from a single counterparty," Moody's analysts wrote on Wednesday.

"If we stay at these levels this would be a higher yield than that seen at the worst close after Liberation Day," Jim Reid, managing director and head of global macro and thematic research at Deutsche Bank, said in a note on Monday.

Tarlov emphasized that Trump's approval rating bump couldn't overshadow the significant downgrade of the U.S. credit rating by Moody's, highlighting growing fiscal deficits.