S&P cuts Thornburg Mortgage

Standard & Poor's said it lowered Thornburg Mortgage Inc.'s senior unsecured debt to CC from CCC+ and preferred stock to C from CCC-. Ratings will remain on CreditWatch negative, where they were placed on March 3.

The counterparty credit rating remains on selective default.

"The rating action is based on Thornburg's announcement that cross-defaults have been triggered under all of the company's repurchase agreements and secured loan agreements," S&P credit analyst Adom Rosengarten said in a written statement.

Given Thornburg's limited financial resources, S&P said it believes the risk of default has increased further.

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