S&P predicts tougher year for structured finance in 2007

Standard & Poor's (S&P) has warned that the pace of ratings upgrades in the European structured finance market will slow in 2007. Last year, the ratio of upgrades to downgrades reached a new high, as the benign credit environment helped the performance of structured finance transactions.

"More than 96% of ratings remained the same or improved, and upgrades exceeded downgrades by more than ever last year," says London-based S&P credit analyst Andrew South.

However, South predicts that changing