Friday, August 3, 2007

Bear Stearns Debt Rating Outlook Is Cut by S&P Amid Mortgage Market Rout

(Bloomberg) -- Bear Stearns Cos., the manager of two
hedge funds that collapsed last month, had its credit-rating
outlook cut to negative by Standard & Poor's on concern declining
prices for mortgage-backed securities will reduce earnings.

The rating, which was raised one level in October, could be
lowered if the New York-based company incurs large losses, S&P
said today in a statement. Bear Stearns's debt is rated A+, the
fifth highest on the investment-grade scale.


Read more at Bloomberg Bonds News

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