S&P Increases Loss Assumptions Under Bank Stress Tests – Standard & Poor’s has issued revised assumptions for loan losses that could result in ratings downgrades for the most vulnerable US banks.  However, S&P notes that  the potential for extraordinary government support could mitigate the impact on ratings. “In general, the results of credit stress testing will likely affect the ratings on hybrid capital instruments–including all manner of preferred stock–more than credit ratings. We assume that banks with capital deficiencies are likely to suspend payments first on hybrid capital issues.” – Research Recap

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Resecuritizations: Four Resecuritizations Come To Market – Mike Scorelle – DBRS today released ratings on four new resecuritizations. Citigroup Mortgage Loan Trust 2009-4, BCAP LLC 2009-RR2 Trust Resecuritization Pass-Through Certificates ( orig Sequoia), (Amherst) ASG Resecuritization Trust 2009-2, REMIC Notes, Series 2009-2 and Credit Suisse First Boston Mortgage Securities Corp., CSMC Series 2009-2R were issued ratings by DBRS … – Another Financial Portal
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Flawed Credit Ratings Reap Profits as Regulators Fail Investors – By David Evans and Caroline Salas – … Now Grassi, 68, has set up a war room in his Tahoe City, California, home to single-handedly take on Standard & Poor’s, Moody’s Investors Service and Fitch Ratings. He’s sued the three credit rating firms for negligence, fraud and deceit. .. .“They’re supposed to spot time bombs,” Grassi says. “The bombs exploded before the credit companies acted. … – thanks Ira Artman – Bloomberg