Stocks Today
My views: The debt rating works similarly to bond rating. The initial ratings can be changed from time to time, so buying a good rated bonds will not always stay that way and it will be downgraded when things don’t look good. I wonder if the ratings is useful in the first place or not. The same goes for the subprime CDOs…
Allco dropped a legal suit on Tuesday to stop Moody’s from downgrading its debt rating to Ba2 from Ba1. Moody’s said the rating “remains on review for further possible downgrade”. Allco Commercial Real Estate Investment Trust fell as much as 5.6 percent to S$0.755, with 1.2 million units traded a day after rating agency Moody’s downgraded the company’s credit rating, dealers said.
“Going forward, the poor rating has a mild negative effect for the REIT. If credit environment improves the rating wouldn’t matter,” a dealer from a local brokerage said.
Allco dropped a legal suit on Tuesday to stop Moody’s from downgrading its debt rating to Ba2 from Ba1. Moody’s said the rating “remains on review for further possible downgrade”.
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