Fitch keeps Thornburg on watch

Fitch Ratings said it is encouraged by Thornburg Mortgage, Inc.'s recent efforts towards improving its funding through executing a $575 million convertible preferred stock offering in August and reducing the borrowings under its warehouse financing lines with proceeds from a recently completed collateralized mortgage obligation transaction.

However, Thornburg's issuer default rating, securities ratings and recovery ratings remain on rating watch negative, Fitch noted, given the uncertainty surrounding the secondary mortgage market and the broad negative sentiment for mortgage related securities.

Fitch added that it is also encouraged by Thornburg's decision to increase its use of collateralized mortgage debt financing and to further reduce, although not eliminate, its reliance on reverse repurchase agreement financing going forward.

Fitch said it currently rates Thornburg as follows: issuer default rating at CCC, senior unsecured notes CCC-/RR5, unsecured subordinate notes CC/RR6 and preferred stock CC/RR6.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.