Financial Times FT.com

Moody’s warns of CLO debt downgrade

By Anousha Sakoui

Published: July 20 2009 19:25 | Last updated: July 20 2009 19:25

A majority of the safest debt issued by complex loan funds at the height of the credit market boom could lose its prime triple A rating, according to Moody’s.

The ratings agency’s warning is another indication of the degree to which the financial crisis has shattered investor confidence in the safety and reliability of a triple A rating. It comes in spite of the recent rally in collateralised loan obligations and their underlying leveraged loans.

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