...Issuer default ratings of Lehman Brothers Holdings Inc. (LBHI) and several of its subsidiaries were downgraded to D followi ng the parent s declaration of bankruptcy under reorganization. Fitch s issue ratings ar e arrayed across the debt and legal entity structure indicating a variety of outcomes due to existing legal and regulatory preferences. LBHI issued the vast majority of unsecured debt directly from the parent and invested that debt in a number of regulated and unregulated subsidiaries. The structure of the entities was designed to facilitate global operations while reducing funding, capital and tax costs. Regulated subsidiaries are expected to be protected under certain preferences including a preference for administration or liquidation rather than bankruptcy. Fitch s recovery analysis is based on the most recent public financial statements at May ##, #### for LBHI and Lehman Brothers Inc. (LBI), its US based broker dealer. LBI is the largest subsidiary...

Report Type: Special Report
Company(ies): Lehman Brothers Holdings Inc.
Ticker(s): LEHMQ
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 Fitch Research
Fitch Ratings is a leading global rating agency committed to providing the world's credit markets with independent, timely and prospective credit opinions. Built on a foundation of organic growth and strategic acquisitions, Fitch Ratings has grown rapidly during the past decade gaining market presence throughout the world and across all fixed income markets.