Monday, April 6, 2009

S&P Prepping For Wave of Downgrades - Surf's Up!

S&P says recent US CMBS highly susceptible to cuts

Mon Apr 6, 2009 3:22pm EDT

NEW YORK, April 6 (Reuters) - Standard & Poor's on Monday said it will make negative pronouncements on U.S. commercial mortgage-backed securities on a "large scale" in coming days after a review of the securities.

The most-recently issued CMBS are "highly susceptible" to downgrades, including top-rated "AAA" issues, after the review that accounted for eroding real estate markets, lack of financing for the assets, and the economic recession.

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