Moody's drops Thornburg

Moody's Investors Service said it downgraded to Caa2 from B2 and to Ca from Caa1 the senior unsecured debt and preferred stock ratings, respectively, of Thornburg Mortgage, Inc.

The ratings remain under review for possible downgrade, the agency noted.

"These rating actions reflect further substantial deterioration in Thornburg's liquidity position due to increase in funding and valuation volatility for the REIT's portfolio of non-conforming single family assets" said Philip Kibel, Moody's analyst.

Between Feb. 14 and Feb. 27, the agency said that Thornburg received and met over $300 million in margin calls on its reverse repurchase agreements which erased Thornburg's liquidity cushion.

© 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.