Rating agencies to downgrade hybrids

Author: Nicholas Pettifer | Published: 4 Dec 2009

Rating agencies are beginning to remove systemic and regional support from the way they assess hybrid securities and subordinated debt. Alongside wider notching, this means likely downgrades.

During an IFLR and Morrison & Foerster web seminar yesterday afternoon, a representative from Moody’s Investors Services explained the agency’s revised methodology.

“In many cases we will be removing systemic and regional support,” said Barbara Havlicek, senior vice...