S&P May Cut More Ratings
Standard & Poor’s said it cut or may reduce ratings of $534 billion of subprime-mortgage securities and collateralized debt obligations as home loan defaults rise. The downgrades may extend losses at the world’s banks to more than $265 billion, S&P said.
The securities represent $270.1 billion, or 47 percent, of subprime mortgage bonds rated from January 2006 to June 2007, S&P said. The ratings company also said it may cut 572 CDOs valued at $263.9 billion.