Capitalism 2 and Capitalism Lab Forum

I was trying at a higher PEI setting, where city budget runs out pretty quick at the beginning, and have to issue bonds to pass the debt for a while. And I notice the bond rating stay the same as D, do I have to pay the bonds after mature, to get a bond rating change? So issuing long term bond is bad for rating?

its never changed that I have seen.

surely a city with 10 billion reserve/200m surplus should have a triple A rating ?

cantdownloadit wrote:its never changed that I have seen.

surely a city with 10 billion reserve/200m surplus should have a triple A rating ?

I've raise my rating to CCC level, but never higher. But most my game only run for less than 40 years, so bonds might not have matured yet. I've try issue a lot of bonds in different mature date or different mature years, It seems to have no effect. Maybe it's related to other factors?

I suspect this is linked to interest rate percentage. Im waiting for a downturn in the economy to see if the bank drop the interest rates and the bond rate comes down in turn.

My citires currently have money in the bank, a decent surplus, but still rated D. Im not sure what the threshold would be but an amount of cash in bank and a 100m surplus surely should improve from a D rating ?

Spac3y wrote:I suspect this is linked to interest rate percentage. Im waiting for a downturn in the economy to see if the bank drop the interest rates and the bond rate comes down in turn.

My citires currently have money in the bank, a decent surplus, but still rated D. Im not sure what the threshold would be but an amount of cash in bank and a 100m surplus surely should improve from a D rating ?

I suspect it has something to do with money supply and demand. And economy status as well. At boom time, the interest rate for bonds goes up like madness. It sort of make sense in a way, since when money supply is tight, people wouldn't want to hand off the little cash in exchange for bonds, at least not with high enough interest return. However this should in theory reduce inflation if enough money is "called back" to the government if the spending is less than bonds issued. But bond rating level isn't always related to the interest rate, it has more to do with maturing years, current and future economy status forecast, etc. And it's the bond's market controlling the rating level with specialized rating agency constantly provide information for the whole financial system. The model used in game is much simpler compared to the real world I'd imagine.

Now I am confused, I've let the economy go into recession, even the inflation drop to negative into deflation, the bonds interest rate still keeps going up, and it's up to 14% now. I still don't know how the one time I got the bonds rating to CCC level, no idea what's the different.

We will fix the bug with bond ratings in the next patch v4.2.05.