The Frankowski Firm

CDOs Face Ratings Downgrade

Paul Davies of FT.com reports that almost $6.5bn worth of complex debt securities face fresh downgrades by Standard & Poor’s because of their exposure to US mortgage-backed bonds, the credit rating agency said Friday.The news will add to the pain for investors in such instruments and follows downgrades issued to $3.7bn worth of similar instruments on Thursday from S&P. In all, the agency has either downgraded or placed on review more than $77bn worth of collateralised debt obligations (CDOs) that have direct exposure to the crisis in the US mortgage markets.

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If you or someone you know lost money in a subprime mortgage or CDO investment, please contact the attorneys at The Frankowski Firm at 888-741-7503 to discuss your potential legal remedies.

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