Moody's Investors Service today downgraded 36 classes of notes in 23 Greek structured finance transactions and placed one class of notes in a CDO transaction on review for possible downgrade.
The rating actions were prompted by Moody's expectations of significant pool performance deterioration due to the stressed economic environment in Greece as well as increased operational risk due to the weakened financial strength of Greek banks as reflected in the downgrades of several Greek banks on 30 April 2010.
Moody's said it had also taken into account the benefit of the package announced by the European policymakers, together with the measures announced by the European Central Bank which have removed the risk of sponsors facing an immediate liquidity crisis.
Five ABS transactions, on review for downgrade, were not affected by today's rating actions as their bank originators have committed to provide additional structural support for their transactions. Moody's is currently analyzing these restructuring proposals.
Moody's previously took negative rating actions on some of these affected transactions. All the notes affected by today's rating actions remain on review for further possible downgrade.