Confidence in the dysfunctional market for securities backed by commercial mortgages has been further dented after a rating flip-flop by Standard & Poor’s, the FT reported. The rating agency, which recently changed its criteria for large numbers of bonds backed by loans for shopping malls, office towers and other commercial property, upgraded bonds to triple-A just days after those same bonds had been sharply downgraded. FT Alphaville said the reversal “did much to erode what little credibility the rating agency had left.”
ft.com/alphaville All times are London time