Friday, May 29, 2009

with 90% of the securities backed by 2007 mortgages likely to face rating cuts

TO BE NOTED: From Alphaville:

"
US commercial property raises debt fears

Fears have grown among US credit investors that probable ratings downgrades of commercial property debt might thwart US government efforts to revive the markets that help fund commercial real estate. S&P warned this week it was likely to downgrade tens of billions of dollars in triple A securities backed by recent real estate loans – with 90% of the securities backed by 2007 mortgages likely to face rating cuts. The move surprised the market and triggered a sharp fall in the value of AAA-rated commercial mortgage-backed securities
.

Me:

Don the libertarian Democrat May 29 16:06
In other words, the credit ratings agencies are still behind the curve.

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