Tag Archives: Credit Ratings

Count another major downgrade against the global financial community. On Thursday Moody├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Investors Service slashed credit ratings for 15 major financial institutions, including Bank of America, Citigroup, JPMorgan Chase, and Morgan Stanley, among others. The reason for Moody├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós actions: The biggest banks face too much risk from debt-saddled Europe, earnings volatility, and still-faulty mortgages stateside. The ratings agency grouped the downgraded institutions into three groups. Stocks slid for many of the banks.

Fitch Ratings downgraded mortgage servicer ratings for Litton Loan Servicing LLP following Litton's acquisition by Ocwen Financial Corp. The agency cut Litton's product servicer ratings in a number of categories, dropping them from RPS1 to RPS3. In addition, Litton's servicer rating for manufactured housing product dropped to RPS3 from RPS2, and its residential special servicer rating fell to RSS3 from RPS1. These drops illustrate a fall from Fitch's highest standards of servicing to average. The ratings downgrade comes in light of Ocwen's acquisition of Litton last year.