Moody's cuts Downey to Ca

Moody's Investors Service said it downgraded the senior unsecured ratings of Downey Financial Corp. to Ca from B3. Ratings are under review for downgrade.

The downgrade reflects acute liquidity constraints at Downey Financial Corp and the minor cushion Downey Savings and Loan currently maintains over its regulatory capital requirements as it struggles with severe asset quality issues, according to the agency.

"Without an equity raise, new debt issuance or dividend from Downey Saving and Loan, all of which we consider very unlikely, Downey Financial Corp. will likely default on its senior note," Moody's vice president Craig Emrick in a statement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.