S&P may cut ratings on $914 mln Alt-A mortgage debt

I thought alt a was not affected.

obviously not.

NEW YORK, Aug 7 (Reuters) - Standard & Poor's on Tuesday said it may cut ratings on $914 million of mortgage bonds backed by loans whose credit quality is near prime.

S&P placed 207 classes of the so-called Alt-A mortgage bonds on CreditWatch with negative implications amid rising delinquencies and expecations that losses will exceed initial forecasts, the rating company said in a statement. Alt-A loans generally conform to "prime" guidelines but have risky attributes such as high loan-to-value ratios.

S&P is also reviewing structured transactions known as collateralized debt obligations that include the Alt-A debt in question, it said.



http://www.reuters.com/article/bondsNews/idUSWNA795520070807
 
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