Standard & Poor's Rating Services (S&P) announced at the end of January it has taken negative action on some 8,000 ratings of US residential mortgage-backed securities (RMBS) or collaterized debt obligations (CDOs). S&P said it placed on CreditWatch with negative implications or downgraded its ratings on 6,389 classes from RMBS transactions backed by US first-lien subprime mortgage collateral rated between January 2006 and June 2007. At the same time, it placed on CreditWatch negative 1,953 ratings from 572 global CDO asset-backed securities and CDO of CDO transactions. On a macroeconomic level, S&P anticipates that the US housing market, especially the subprime sector, will continue to decline before it improves, with housing prices continuing to come under stress.
Pages to are hidden for
"S&P announces more than 8,000 negative rating actions"Please download to view full document