Retailers, consumers and prices
Why do this? The Wall Street Journal offers some possibilities:
“Sounds like Moody’s may be trying to get out in front on defaults, given they were perhaps a little behind on subprime mortgages and commercial mortgage-backed securities,” said David Resnick, managing director at investment banking firm Rothschild Inc. which works on many corporate bankruptcies and restructurings.
Moody’s and credit-rating rival Standard & Poor’s were criticized by the Senate in hearings late last year about the effectiveness of the ratings agencies.
The Journal also says Moody’s enters risky territory by naming some companies that say they are in, as the paper put it, decent fiscal health.
Both food makers cut their profit forecasts for the current year, citing the pain they expect from the stronger U.S. dollar decreasing the value of sales from international markets.
Both food makers reported lower profits on a net basis.
But excluding various items, their earnings were stronger than analysts were expecting.