Although LoDoc residential loans are riskier than FullDoc loans, Standard & Poor's Ratings Services considers that to date, this risk has been managed effectively. In fact, no prime, fully insured Australian residential mortgage-backed securities transaction has been downgraded by Standard & Poor’s as a result of underlying performance deterioration.
Credit ratings are one of several tools that investors can use when making decisions about purchasing bonds and other fixed income investments. We created a guide to help explain what credit ratings are, and are not, who uses them, and why they can be useful to the capital markets.
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FMG Resources (Australia): What's Behind The Downgrade Fortescue Metals Group is one of the newcomers to Australia’s large resources sector. Although Standard & Poor's does not rate the group itself, we recently lowered the ratings on senior secured notes issued by FMG Resources, a subsidiary. Director Peter Stephens discusses the reasons.
Definitions
Understanding Standard & Poor's Rating Definitions This article is designed to help market participants better understand what Standard & Poor's credit ratings mean. Although the official definitions appear outwardly to be very simple, they embody multiple factors that compose the overall assessment of creditworthiness.
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