Auto parts supplier Delphi Corp.'s bankruptcy is expected to add some pressure on European CDO ratings in the near term - but the impact is expected to be largely felt on the synthetic side, said market analysts.

Standard & Poor's said that 842 of its publicly and privately rated CDOs have Delphi in their reference portfolios, with 638 of these being European transactions - a smaller number were originated in North America and Japan. S&P estimates that roughly one-third of the synthetic CDOs it rates that reference Delphi could be downgraded on one or more of their rated tranches.

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