Standard and Poor's Ratings Services on late Friday downgraded Downey Financial'sDSL counterparty credit rating, following a similar action by Moody's Investors Service late Thursday. Citing its "increasing concerns about the substantial negative effect California's deteriorating housing market is having on Downey's credit performance, financial profile and capitalization," S&P lowered the counter party rating from BBB-/A-3 to BB+/B, and kept the Newport Beach, Calif. company on "rating watch negative." Moody's downgraded its senior unsecured debt rating to B1 from Ba1 and lowered its bank financial strength rating for Downey's main subsidiary, Downey Savings & Loan Association, FA, to D from D+. Moody's noted while Downey's capital ratios "remain high in relation to other U.S. banks," with core and risk-based capital ratios...
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