Moody’s makes further downgrades

Moody’s has responded to continuing price volatility by opting for negative ratings actions on several commercial paper programmes and special investment vehicles (Sivs) worth approximately $14 billion.

The rating agency is modelling the expected loss on these deals with reference to the price decline observed during the months of July and August. Tranches unable to sustain a price decline of two times that seen in this period will lose their triple-A ratings.

“If the portfolio market value of a

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