Moody's : Loan Losses on U.S Banks

Moody’s Investors Service says that both the U.S. banking industry rating outlook and the industry’s broader fundamental credit outlook continue to be negative because of the recession.

In a new report, Moody’s indictaes that it expects rated U.S. banks will incur a total of approximately US$470 billion (pre-tax) of loan losses and writedowns in 2009 and 2010. The vast majority of this estimated loss, US$415 billion worth relates to expected loan losses, which represents 8% of the industry’s outstanding loans at the end of last year.

As a result of these substantial asset quality problems and the need to build reserves, many U.S. banks will be unprofitable in 2009, placing considerable strain on their capital levels, the rating agency believes. Moody’s notes that, despite heightened provisioning over the past several quarters, banks’ coverage of bad loans continues to drop; the ratio of allowance for loan losses to non-performing loans stood at 70% at March 31, versus 100% in the first quarter of 2008. Full Story

Stock Of The Week :TransDigm Group Inc

TransDigm Group Inc is a defense stock and look for the details below. Possible market pull back so watch out, And Ideal entry would be $38-$39 zone so act accordingly.Possible move on this would be around 15-20%. Previous week stock gained around 20% Click here

TransDigm Group Incorporated (TD Group), through its wholly owned subsidiary, TransDigm Inc. (TransDigm), is a global designer, producer and supplier of engineered aircraft components for use on all commercial and military aircraft. On September 26, 2008, TransDigm, through its wholly owned Champion Aerospace, LLC subsidiary, acquired the magneto and harness product line business of Unison Industries, LLC (Unison). The acquired product line includes the SLICK magnetos, harnesses and components, which are used on general aviation piston aircraft. On May 7, 2008, TransDigm acquired CEF Industries, Inc. (CEF). CEF is a designer and manufacturer of specialized and highly engineered actuators, compressors, pumps and related components for the aerospace market. In December 2008, the Company acquired Aircraft Parts Corporation (APC) from Unison Industries LLC, a wholly owned subsidiary of General Electric Company's GE Aviation business unit.