Securitization

S&P CMBS Downgrades A-Coming 

Securitization researchers are expecting widespread downgrade action in the short-term commercial-mortgage backed securities (CMBS) space after Friday’s tightening of ratings requirements by Standard & Poor’s. While the rating agency is not yet downgrading the 3,563 CMBS classes from 217 conduit/fusion CMBS transactions it holds on a negative rating watch, S&P is making it clear it intends resolve the status of the bonds within the next few months.