Saturday, August 15, 2009
Specials become Less Special
Fitch started taking whacks at the Specials, taking a CSS2- dump on Wachovia and slapping Wells Fargo with a CSS3+.
The funny part about it is that the downgrade was due to the fact that they put a guy with "no prior CRE experience" in charge of their special servicing operation. Wachovia and Wells are not 100% combined, yet, but even with the wave of defaults that are sure to come (especially in Wachovia-originated loans), they felt like it was a good idea to put a neophyte in charge. I have no idea who it is, but the prior head had 20 years of experience, and was well liked by Fitch.