Moody's downgrades Thornburg

Moody's Investors Service said it downgraded Thornburg Mortgage, Inc.'s senior unsecured debt to C from Ca, completing the review for possible downgrade begun on Oct. 3.

Thornburg announced on Wednesday that although it received forbearance from its repo counterparties until April 30, it anticipates filing for Chapter 11 bankruptcy protection. The company also said it will not be making an interest payment on its senior subordinated notes due 2015, which will constitute a separate event of default upon the expiration of the 30-day grace period.

The agency said the downgrade reflects an expectation of default encapsulated in a bankruptcy filing and the potential for above-average loss severity on Thornburg's debt.

© 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.