Moody's: Block unaffected

Moody's Investors Service said that the announcement that H&R Block and Cerberus Capital Management are terminating the sale agreement for Option One Mortgage Corp. has no effect on Moody's review for possible downgrade of Block Financial Corp.'s Baa1 long-term rating.

According to Moody's, with the announcement of the termination of the deal, H&R Block is free to re-market Option One and, more importantly, to close its unprofitable origination platform.

Moody's said it believes that H&R Block's exposure to mortgages has been substantially reduced through asset write-downs and primarily relates to its servicing asset, the value of which is less volatile than the value of its subprime mortgages.

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