Bonds

S&P Slashes Ratings on 37 RMBS Classes 

Standard & Poor’s on Friday slashed ratings of 37 classes of residential mortgage-backed securities (RMBS), citing delinquencies and an overall weakness of the housing market. After a review of three RMBS transactions backed by US prime jumbo, Alt-A and subprime mortgages issued in 2004 and 2006, the ratings agency downgraded 37 classes, 22 of which previously bore negative watches. Two of the downgraded classes moved from triple-A to triple-B, but most slipped from triple-A to double-B.