S&P Downgrades $34 Billion of Bonds Backed by Alt-A Mortgages
May 28 (Bloomberg) -- Standard & Poor's lowered its ratings on $34 billion of securities backed by Alternative-A mortgages, the firm's largest downgrade for the type of debt, amid the U.S. housing slump.
Ratings on 1,326 classes of the bonds created in the first half of 2007 were downgraded, or 14 percent of the total, New York-based S&P today said today in statement.
Alt-A home loans are made to borrowers who want atypical terms such as proof-of-income waivers, delayed principal repayment or investment-property collateral, without having to offer sufficient compensating attributes.
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