Moody's drops Capmark

Moody's Investors Service said it downgraded the senior unsecured ratings of Capmark Financial Group Inc. to Caa1 from B2.

The ratings remain under review for possible downgrade.

The agency said that the rating action reflects the explanatory note in Capmark's 10-K filing in which its auditors raise doubt about the company's ability to continue as a going concern, as well as the still unresolved nature of Capmark's efforts to modify the terms of its bridge loan agreement and senior credit facility, which could have implications for its liquidity and funding.

Capmark's business has been under increasing pressure due to the frozen debt capital markets, which have hindered the ability of its borrowers to refinance maturing obligations as well as the company's ability to originate new loans and generate related fees and income, the agency added.

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