S&P may cut ratings on $914 mln Alt-A mortgage debt

Discussion in 'Wall St. News' started by THE-BEAKER, Aug 7, 2007.

  1. I thought alt a was not affected.

    obviously not.

    NEW YORK, Aug 7 (Reuters) - Standard & Poor's on Tuesday said it may cut ratings on $914 million of mortgage bonds backed by loans whose credit quality is near prime.

    S&P placed 207 classes of the so-called Alt-A mortgage bonds on CreditWatch with negative implications amid rising delinquencies and expecations that losses will exceed initial forecasts, the rating company said in a statement. Alt-A loans generally conform to "prime" guidelines but have risky attributes such as high loan-to-value ratios.

    S&P is also reviewing structured transactions known as collateralized debt obligations that include the Alt-A debt in question, it said.