Moody's may cut BAWAG (Austria) on Refco exposure
Tue Oct 18, 2005 10:57 AM ET NEW YORK, Oct 18 (Reuters) - Moody's Investors Service on Tuesday said it may cut the debt ratings of Austrian Bank BAWAG P.S.K., citing a $425 million line of credit at risk linked to Refco Inc. (RFX.N: Quote, Profile, Research) , which filed for bankruptcy protection this week.
"Moody's is concerned that the potential loss content of this exposure could negatively affect the bank's capitalization," the rating agency said.
Moody's said it may cut the bank's "A2" long-term rating and its "C-plus" financial strength rating.
Moody's affirmed the bank's "P-1" short-term rating.
Downgrades usually raise a company's borrowing costs.
**My friends, these bastards hid from regulators for 8 YEARS!!!! so who knows what other funny stuff awaits or the extent of trouble in derivitive or hedge fund land, of course they want to regulate themselves!
D
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