On Friday May 3, Moody's Investors Service said it would be reviewing 14 single asset and large loan transactions for possible downgrade because of the lack of resolution on terrorism insurance. While admitting that the risks of another attack like that on Sept. 11 "are very difficult to quantify... ignoring the risks would be inappropriate," the agency said. A drastic downgrade does not appear to be likely, however Moody's notes that there has clearly been an increase in risk for investors.

In its press release, Moody's said it will consider any current insurance and planned coverage in their analysis, as well as any government plan that might be implemented (see Fig. 1 for list of deals on review).

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