Financial Times FT.com

Commercial mortgage bonds may lose top ratings

By Nicole Bullockin New York

Published: July 21 2009 13:58 | Last updated: July 21 2009 13:58

Some $235.2bn in bonds backed by commercial mortgages could lose their triple A ratings after Standard & Poor’s tightened criteria for rating commercial mortgage backed securities.

It is the latest blow for the commercial real estate sector where prices have dropped about 25 per cent over the past year as the recession has reduced the demand for office buildings, retail store space, hotels and large multi- family flats.

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