Primus downgrade prompts questions over CDPCs

The prospects for credit derivative product companies (CDPCs) have worsened in recent months following several credit events, despite the resilience of the vehicles in the early part of the financial crisis.

Primus Financial Products, a specialist seller of credit protection and the first established CDPC, saw Moody's Investors Service and Standard & Poor's downgrade its counterparty ratings in October from Aaa to Aa1 and AAA to AA+, respectively. Both agencies cited the deterioration in the cre