S&P lowers Capmark

Standard & Poor's said it lowered its ratings on Capmark Financial Group Inc., including lowering the corporate credit rating to B+ from BBB-.

At the same time, the agency said it placed the ratings on Creditwatch with negative implications.

"The four-notch downgrade is driven by funding pressures that have been magnified by recent write-downs, asset quality deterioration, and very poor market conditions," said S&P credit analyst Jeffrey Zaun.

Poor reported earnings have, so far, been driven by noncash items, the agency said, adding that it believes the write-downs and provisioning that drove the $800 million loss for the quarter are precursors to losses and that the firm's capital is not strong enough to absorb significant losses.

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