Creditflux Newsletter

Standard & Poor’s downgraded one credit derivative product company and said that downgrades may follow for other entities, after introducing a new methodology for rating these companies. It downgraded Channel Capital’s issuer credit rating from AAA to AA-. It also said that its ratings on Athilon, Invicta and Newlands Financial were under review and that these entities are likely to be downgraded. But S&P says that these CDPCs have not yet finished rerunning their capital models based on the new criteria.

S&P says it is also likely to downgrade Centerline once its review is completed. Only one CDCP has so far emerged with its S&P ratings intact. Koch Financial Products had its AAA ratings affirmed.