Thursday, April 22, 2010

S&P Makes a Funny - ESH Defaults

S&P finally applied appropriate D ratings to 14 classes in the ESH deal, up to the A4.

Interestingly, there is nothing new in the S&P review that we didn't write about as far back as December 2008, and it's not because we are overly bright or have exposure to the deal. It is because it has been obvious it would fail to most folks for some time.


R said...

so how many people are staffed at S&P for CMBS Surveillance? 2? You think they'd be a little more up on _all_ their ratings.

crabsofsteel said...

This is really not of consequence, as they only rate something D when scheduled interest or principal has not been paid. Downgraded class were rated CCC in anticipation of the actual default due to shortfalls. That already tells you all you need to know.