S&P out of CMBS game

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

arrow_forward_ios
Tishman Speyer, Goldman Sachs plan 2K units in Jersey City
Tishman Speyer, Goldman Sachs plan 2K units in Jersey City
Tishman Speyer, Goldman Sachs plan 2K units in Jersey City
JPMorgan Chase CEO Jamie Dimon (Photo-illustration by Paul Dilakian/The Real Deal, Getty Images)
Ranking New York City’s top real estate lenders
Ranking New York City’s top real estate lenders
Goldman Sachs' David Solomon and 15 Brooklyn Park Drive (Streeteasy, Getty)
Goldman Sachs buying $90M Brooklyn Heights apartments
Goldman Sachs buying $90M Brooklyn Heights apartments
Goldman Sachs CEO David Solomon and 200 Wall Street (Getty Images, Dan DeLuca, CC BY 2.0 - via Wikimedia Commons)
Goldman Sachs lightens Covid rules in push for full-time office return
Goldman Sachs lightens Covid rules in push for full-time office return
DH Property Holdings's Dov Hertz, CBRE Investment Management’s Chuck Leitner and 640 Columbia Street (CBRE, 640 Columbia)
CBRE nears $330M deal for Amazon-leased warehouse in Red Hook
CBRE nears $330M deal for Amazon-leased warehouse in Red Hook
Taconic's Charles Bendit and Paul Pariser with rendering of One Essex Crossing (Taconic Partners, VMI Studio)
Essex Crossing developers land $466M refi
Essex Crossing developers land $466M refi
(iStock, Illustration by Kevin Cifuentes for The Real Deal)
Goldman Sachs-backed funds pay $45M for Florida community
Goldman Sachs-backed funds pay $45M for Florida community
Goldman Sachs' David Solomon (Getty)
Goldman Sachs halts work in SPAC market
Goldman Sachs halts work in SPAC market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...