S&P’s ‘Refined Criteria’ for Rating CMBS Conduits
July 24th, 2009
Research Recap submits:
For those who have been following the saga of Standard & Poor’s abrupt change of heart on ratings of commercial mortgage-backed securities, below are the key sections of S&P’s changes in criteria. As the Financial Times reported today “Confidence in the dysfunctional market for securities backed by commercial mortgages has been further dented after a rating flip-flop by Standard & Poor’s caused confusion.”
The rating agency, which recently changed its criteria for large numbers of bonds backed by loans for shopping malls, office towers and other commercial property, upgraded bonds to triple A just days after those same bonds had been sharply downgraded.
