Moody’s Investors Service has downgraded the millions of $248.9 million of some of the riskiest securities issued by collateralized loan obligations so far this month as the result of a change in its rating methodology.

The rating agency is taking a harder look at “combo” notes, a hybrid debt/equity instrument, to account for what happens to them when a deal is refinanced. As a result, it has put the ratings of the combo notes of 38 CLOs under review for possible downgrades.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.