S&P out of CMBS game

TRD New York /
Mar.March 06, 2012 12:00 PM

Financial research and ratings firm Standard & Poor’s has been pushed out of commercial mortgage-backed securities deals following a $15 billion sale that went south last year, Bloomberg News reported.

Last July, a massive deal between Citigroup and Goldman Sachs fell apart after S&P pulled its ratings for the securities in the deal, saying it had to review its model used in rating the assets. Now, Wall Street is pushing back, finally busting the trio of ratings agencies that have had a stranglehold on the U.S. bond market, Bloomberg said.

Not only are Goldman and Citi no longer using S&P’s ratings, the other largest underwriters, including JPMorgan Chase, Deutsche Bank and Morgan Stanley have also begun bypassing the firm.

The three major ratings firms — S&P, Moody’s and Fitch — did 97 percent of the business in their field last year, according to numbers from the U.S. Securities and Exchange Commission, Bloomberg said. [Bloomberg]

Related Articles

Nightingale’s Eli Schwartz and 111 Wall Street (Credit: Google Maps)

Nightingale partnership closes on $175M purchase of 111 Wall

Extell Development chairman Gary Barnett with 555 Tenth Avenue and 524 East 14th Street (Credit: Barnett by Anuja Shakya, 555ten and StreetEasy)

Extell scores $700M refi for three Manhattan buildings

Softbank CEO Masayoshi Son and Goldman Sachs CEO David Solomon (Credit: Getty Images)

Goldman Sachs will lead Phase II of SoftBank’s WeWork rescue plan

Jho Low and the Time Warner Center at 25 Columbus Circle (Credit: Getty Images)

Financier at center of 1MDB fraud case agrees to give up hundreds of millions of dollars

70 Pine Street and Goldman Sachs chairman Lloyd Blankfein (Credit: Wikipedia and Getty Images)

Goldman Sachs refis Art Deco apartment conversion at 70 Pine with $386M loan

247 Metropolitan Avenue in Williamsburg (Credit: The Pod Hotel)

Goldman Sachs provides $90M loan to refinance hotel in Williamsburg

Anna Castelini and 601 Lexington Avenue (Credit: LinkedIn and Andrew Moore via Flickr)

DeKalb Market Hall creator bringing new food hall to Midtown

Wells Fargo, JPMorgan Chase and Citigroup each recorded a rise in second quarter profits in their consumer divisions (Credit: iStock)

Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut