Moody’s Downgrades CalFed Debt: Moody’s Investors Service...
From Times Staff and Wire Reports
Moody’s Downgrades CalFed Debt: Moody’s Investors Service downgraded ratings on debt, commercial paper and deposits for CalFed and its California Federal Bank subsidiary. Moody’s, which has downgraded credit ratings on several California banks and thrifts recently, cited the Los Angeles thrift’s “somewhat weak” capital, uncertainty over the health of California real estate and “deteriorating asset quality measures.” About $875 million in long-term debt is affected. A CalFed spokesman said the company is disappointed, adding that the thrift believes the action reflects the rating agency’s pessimism about California real estate.
