S&P: RMBS Downgrades Hit Record High

Downgrades on U.S. residential mortgage-backed securities deals reached a record high of 45 in the second quarter, although rating performance overall remained strong, according to Standard & Poor's.The downgrades were offset by 306 RMBS upgrades during the quarter, for an upgrade/downgrade ratio of 6.8, S&P reported. That ratio was about half the 12.7 ratio recorded in the first quarter and the 13.8 overall ratio for the past 10 quarters, the rating agency said. The previous record high for RMBS downgrades was 31, which occurred in the first quarters of 2000 and 2005. S&P can be found online at http://www.standardandpoors.com.