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BUSINESS
April 19, 1991
Moody's Investors Service Inc., a New York credit ratin agency, has downgraded the credit ratings of troubled USF&G Corp. and the financial strength ratings of the insurer's property and casualty and life insurance subsidiaries.The recent actions affect $600 million in securities and $400 million in commercial paper held by the Baltimore insurer, Moody's said. All of the ratings for USF&G's bonds and notes are still of investment grade."USF&G's near-term performance will continue to remain under pressure from greater than expected risks associated with the company's asset quality and restructuring programs," Moody's said in a press release.
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NEWS
By Alison Knezevich, The Baltimore Sun | April 25, 2012
A $21 million investment at the center of a legal debate in Baltimore County government was downgraded to junk status less than a month after the county purchased it in 2007, according to county documents. Details of the investment loss were included in a November 2007 letter sent to members of the former County Council and other county officials. The county is now considering suing Merrill Lynch, and has since stopped making similar investments. The letter, from County Administrative Officer Fred Homan, said the county bought commercial paper issued by Mainsail II LLC through Merrill Lynch on July 31, 2007.
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BUSINESS
April 5, 1991
T. Rowe Price Associates Inc. said it expects a decline in first-quarter earnings, but that the picture should brighten later in the year.Several factors are contributing to the decline, George A. Roche, chief financial officer of the Baltimore-based mutual fund company, told shareholders at yesterday's annual meeting.The company is still putting money into starting its new Owings Mills office building, but the site won't begin generating revenue until later in the year. Also, the company is still feeling the effects from the bankruptcy filing of Mortgage and Realty Trust of Elkins Park, Pa., from which T. Rowe Price had bought commercial paper.
BUSINESS
By Lorraine Mirabella and Lorraine Mirabella,lorraine.mirabella@baltsun.com | April 2, 2009
Power tool maker Black & Decker Corp. said Wednesday it is moving to replace its short-term debt with higher-interest long-term debt in light of the recession and recent ratings downgrades. The Towson company floated a $350 million bond offering this week with interest of 8.9 percent. It plans to use net proceeds primarily to pay down $283 million in existing commercial paper and revolving credit borrowings carrying a much lower average interest rate of 2.9 percent, according to documents filed with the U.S. Securities and Exchange Commission.
BUSINESS
By Kevin G. Hall and Kevin G. Hall,McClatchy-Tribune | September 12, 2007
WASHINGTON -- Although a semblance of calm has returned to financial markets, Treasury Secretary Henry M. Paulson Jr. warned yesterday that the turmoil is far from over, and there are no quick fixes as the financial sector corrects from a period of excesses. "This is something which, in my judgment, will take a while to work through," Paulson said during a breakfast with journalists. "There have been improvements in certain markets, but there's still a lot of focus on a number of the complex products."
BUSINESS
By NEW YORK TIMES NEWS SERVICE | March 21, 2002
William H. Gross, a widely respected bond fund manager, sharply criticized General Electric Co. yesterday, saying that GE is using acquisitions to drive its growth rate and is relying too much on short-term financing. Gross, manager of the $52 billion Pimco Total Return mutual fund, the world's largest bond fund, said that GE's strategy was similar to a tactic used by failed conglomerates in the 1960s, such as LTV Corp. Pacific Investment Management Co., his fund group, would no longer buy short-term GE debt, he said.
BUSINESS
By Bloomberg Business News | May 20, 1993
NEW YORK -- In the largest syndicated loan package eve assembled, General Motors Corp. and its financing subsidiary, General Motors Acceptance Corp., have completed agreements to refinance $20.6 billion worth of credit lines with six syndicated credit facilities involving 118 banks.Bankers said the refinancing agreement was a major vote of confidence by the banking community in the beleaguered automaker.A company official said the new lines were "slightly more expensive" for the company because they involved terms up to five years, instead of one-year and three-year terms.
BUSINESS
By BLOOMBERG NEWS | April 7, 2005
NEW YORK - Wm. Wrigley Jr. Co., the world's largest chewing-gum maker, plans to issue bonds for the first time in its 114-year history to finance the purchase of brands including Life Savers and Altoids from Kraft Foods Inc. Wrigley, which first sold shares to the public 88 years ago, will sell $1 billion in debt and borrow $1.5 billion in the commercial paper market for the first time, according to a report by Standard & Poor's. Commercial paper is debt that matures in nine months or less.
NEWS
By Alison Knezevich, The Baltimore Sun | April 25, 2012
A $21 million investment at the center of a legal debate in Baltimore County government was downgraded to junk status less than a month after the county purchased it in 2007, according to county documents. Details of the investment loss were included in a November 2007 letter sent to members of the former County Council and other county officials. The county is now considering suing Merrill Lynch, and has since stopped making similar investments. The letter, from County Administrative Officer Fred Homan, said the county bought commercial paper issued by Mainsail II LLC through Merrill Lynch on July 31, 2007.
BUSINESS
By JANE BRYANT QUINN and JANE BRYANT QUINN,1990, Washington Post Writers Group | December 5, 1990
NEW YORK -- If you keep your ready savings in a bank money-market deposit account, you are sacrificing yield. You could earn perhaps 1.2 percentage points more by switching to a money-market mutual fund.And now, there's more reason than ever to consider it. Both the Securities and Exchange Commission and the industry's trade group, the Investment Company Institute, are backing new money-fund safety regulations. In a reverse of the usual story, the trade group wants even tougher rules than those the government is proposing.
BUSINESS
By From Sun staff and news services | October 22, 2008
First, it was the banks. Now the Federal Reserve has come to the aid of money market funds as the government seeks to break the credit logjam that threatens the global economy. A week after the government announced it would spend $250 billion to buy stakes in U.S. banks, the Fed stepped up yesterday to help money market funds that have been squeezed by worried investors demanding to cash out their holdings. Under a new program, the Fed will help buy up to $540 billion in short-term debt, including certificates of deposit and commercial paper that expires in three months or less.
BUSINESS
October 7, 2008
Finance firms ordered to halt high charges Maryland Insurance Commissioner Ralph S. Tyler ordered nine premium finance companies yesterday to stop charging unlawfully high finance charges, a move expected to save consumers less than $100 a year each. The companies lend to drivers who cannot obtain private coverage and turn to the Maryland Automobile Insurance Fund. Most policyholders rely on premium finance companies because state law requires that the entire annual premium be paid to MAIF upfront, at an average of $1,700.
BUSINESS
By New York Times News Service | November 14, 2007
In another sign of turmoil in the credit markets, large investment firms, having sought out the high yields for their money market funds, are being forced to protect the funds from losses brought on by investments that no longer seem safe. The moves have cost the firms hundreds of millions of dollars, a price that could climb if credit market problems worsen. The bailouts reflect the fact that while the managers of money market funds have no legal obligation to assure that the funds do not lose money, they fear that losses might lead investors to flee the fund and perhaps take money out of other funds managed by the company.
BUSINESS
By Kevin G. Hall and Kevin G. Hall,McClatchy-Tribune | September 15, 2007
WASHINGTON -- The Federal Reserve is widely expected to cut its benchmark interest rate Tuesday for the first change since June last year. Given what's roiling Wall Street, however, it might prove akin to offering a Band-Aid to stop a stomachache. In recent speeches, Fed governors have all but confirmed that a cut is coming from the Federal Open Market Committee, the Fed's policymaking group. Most Wall Street economists expect a cut of a quarter-percentage point, bringing its benchmark fed funds rate - the fee that banks charge each other for overnight loans - down to 5 percent.
BUSINESS
By Kevin G. Hall and Kevin G. Hall,McClatchy-Tribune | September 12, 2007
WASHINGTON -- Although a semblance of calm has returned to financial markets, Treasury Secretary Henry M. Paulson Jr. warned yesterday that the turmoil is far from over, and there are no quick fixes as the financial sector corrects from a period of excesses. "This is something which, in my judgment, will take a while to work through," Paulson said during a breakfast with journalists. "There have been improvements in certain markets, but there's still a lot of focus on a number of the complex products."
BUSINESS
By BLOOMBERG NEWS | April 7, 2005
NEW YORK - Wm. Wrigley Jr. Co., the world's largest chewing-gum maker, plans to issue bonds for the first time in its 114-year history to finance the purchase of brands including Life Savers and Altoids from Kraft Foods Inc. Wrigley, which first sold shares to the public 88 years ago, will sell $1 billion in debt and borrow $1.5 billion in the commercial paper market for the first time, according to a report by Standard & Poor's. Commercial paper is debt that matures in nine months or less.
BUSINESS
By BLOOMBERG NEWS | February 5, 2002
EXETER, N.H. - Tyco International Ltd. said yesterday that it plans to tap bank loans to repay $4.5 billion in commercial paper amid investor speculation the company may get shut out by other corporate lenders. "There are market concerns because most of the [Tyco] paper is sold overnight and investors have been reluctant to hold it longer than that for several weeks," said Frank Rachwalski, who helps manage about $328 billion in assets at Zurich Scudder Investments Inc. in Chicago. Yields on Tyco's bonds rose and its shares fell 19 percent as the company's flexibility is reduced by shifting the debt to $5.9 billion in lending agreements provided by banks led by J.P. Morgan Chase & Co. Similar maneuvers by Enron Corp.
BUSINESS
By BLOOMBERG NEWS | December 2, 2000
STAMFORD, Conn. - Xerox Corp. had its credit ratings on about $11 billion in debt cut to below-investment grade yesterday by Moody's Investors Service, a move that will heighten the cash crunch at the world's largest copier company. The company also announced 275 job cuts yesterday. The firings follow 350 administrative staff jobs cut last month. All of the recently announced job cuts are separate from the 5,200 layoffs that the company said in March would be carried out by April 2001.
BUSINESS
By NEW YORK TIMES NEWS SERVICE | March 21, 2002
William H. Gross, a widely respected bond fund manager, sharply criticized General Electric Co. yesterday, saying that GE is using acquisitions to drive its growth rate and is relying too much on short-term financing. Gross, manager of the $52 billion Pimco Total Return mutual fund, the world's largest bond fund, said that GE's strategy was similar to a tactic used by failed conglomerates in the 1960s, such as LTV Corp. Pacific Investment Management Co., his fund group, would no longer buy short-term GE debt, he said.
BUSINESS
By BLOOMBERG NEWS | February 5, 2002
EXETER, N.H. - Tyco International Ltd. said yesterday that it plans to tap bank loans to repay $4.5 billion in commercial paper amid investor speculation the company may get shut out by other corporate lenders. "There are market concerns because most of the [Tyco] paper is sold overnight and investors have been reluctant to hold it longer than that for several weeks," said Frank Rachwalski, who helps manage about $328 billion in assets at Zurich Scudder Investments Inc. in Chicago. Yields on Tyco's bonds rose and its shares fell 19 percent as the company's flexibility is reduced by shifting the debt to $5.9 billion in lending agreements provided by banks led by J.P. Morgan Chase & Co. Similar maneuvers by Enron Corp.
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