Sept. 4 (Bloomberg) – Moody’s (MCO) Investors Service said it may cut the ratings of €854 million ($1.2 billion) of constant proportion debt obligations after disclosing a second error in the way it assesses the securities.
Moody's review was “prompted by the identification of a coding error in a model used for monitoring CPDOs,” the New York-based firm said in a statement today. Moody’s will probably downgrade the affected CPDOs by one or two levels, it said. The securities were sold by banks including ABN Amro Holding NV (ABN), JPMorgan Chase & Co (JPM) and Lehman Brothers Holdings Inc (LEH)...
David S. Products, a spokesman for NakedShorts, said in an official statement:
We are so blown away by the surrealness of this disclosure that our satire model has blown a circuit. Thus we are not able to add anything that could make this any funnier than it is.
Moody’s May Downgrade CPDOs After Error in New Model
by Neil Unmack and John Glover
Bloomberg Sep.4 2008
Earlier on NakedShorts:
May 23 2008