The Real Deal New York

The trouble in the subprime mortgage market is expected to take a toll on credit-rating agencies Standard & Poor’s and Moody’s Investors Service. Both agencies have benefited from the boom in lending to consumers with poor credit histories, because banks typically package these loans into bonds, which are then rated by Moody’s or S & P before being sold to investors. According to analysts, revenues from rating subprime mortgage-backed bonds accounted for 6 percent of Moody’s total sales last year, and for 3 percent of sales at S & P’s parent, McGraw-Hill Companies. more [Crain's]