2min snip

FT News Briefing cover image

The shifting tectonic plates of UK politics

FT News Briefing

NOTE

Questionable Ratings in Commercial Real Estate Debt

Credit agencies have potentially misrated over $100 billion of commercial real estate debt, with some defaulted deals still holding the highest credit ratings. The rise of single-asset, single-borrower deals, where mortgage bonds are backed by one property, raises concerns similar to those seen before the financial crisis when high ratings were assigned to bonds backed by subprime borrowers.

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