S&P Does Its Part For TALF

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We are now inside of the two minute warning on the rating agency credibility countdown clock. While even the most green shoot loving politicians and pundits warn that there is a world of hurt coming in the commercial real estate market, S&P took the opportunity to upgrade 7 series of highly coveted 2007 vintage CMBS to AAA after downgrading them a week earlier. It seems S&P took a step back and rethought its approach to the scenario loss assumptions that brought it worldwide praise from investors and governments alike and realized that it was far too harsh. Consequently, the rating agency handed out the frequently seen 9-notch upgrade from BBB- to AAA to three series yesterday and made them (and the four other series) TALF eligible. Mad Max, take notice, the three series that got the supersized upgrade were from your favorite firm.

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