2007 Specialty Finance Midyear Update: Pockets Of Pain Amid Overall Ratings Stability Apr 07
- ID: 2085529
- April 2007
- Standard & Poors
(Portions of this article previously appeared in " Market Liquidity Is Changing Leverage Dynamics For U.S. Finance Companies," published Nov. 1, 2006, on RatingsDirect.) For the remainder of 2007, Standard & Poor's Ratings Services believes that several developing credit trends for specialty finance companies will continue. These include pressure on subprime mortgage lenders, a stable operating environment for commercial real estate companies, and legislative uncertainty for the student loan industry. While our concerns about overleveraged consumers remain, we believe that the economy will remain on track and interest rates will not increase substantially, which should keep the outlooks for most rated companies stable. In an earlier outlook statement (" U.S. Specialty Residential Mortgage Lenders Preparing for the Worst, Hoping for...
Companies mentioned in this report are:
- Real Industry Inc.
- LNR Property LLC
- iStar Inc.
- New Century Financial Corp.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >