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S&P Credit Research1705 word report
published Apr 11, 2008
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S&P Credit Research
| Abstract: | U.S. financial institutions with business profiles that have a heavy concentration in real estate may suffer a disproportionate negative effect on earnings relative to those financial institutions with a higher degree of diversification. Given the weakened housing market outlook and increased probability that U.S. banks and thrifts will experience higher credit losses, Standard&Poor's Ratings Services will be reviewing its sector ratings and rating outlooks, specifically for those businesses with a high focus on both residential and commercial real estate. Clearly, those with credit exposures and nonperforming assets that are outsized relative to their peers are most vulnerable to negative rating actions and/or outlook revisions in a hard-landing economic scenario. During the past three years, we have made it
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| Brief Excerpt: | RESEARCH Ratings Definitions U.S. Banks With Heavy Concentrations In Real Estate Face Earnings Challenges Ahead Publication date: 11-Apr-2008 Primary Credit Analyst: Victoria Wagner, New York (1) 212-438-7406; victoria_wagner@standardandpoors.com...
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| Report Type: | Commentary
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| Sector: | Global Issuers, Public Finance, Structured Finance
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| Free Sample: |
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S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.