Moody’s Lowers Debt Rating of Glenfed, S

Moody’s Investors Service slightly lowered its ratings on about $1.2 billion worth of long-term debt of Glendale Federal Bank and its parent, Glenfed Inc. Moody’s said it lowered the ratings because of the size of Glenfed’s commercial real estate loan portfolio and because of an increase in Glenfed’s non-performing assets, a category that includes loans that are past due and repossessed real estate. Moody’s also said it expects Glenfed to expand its reserves for possible loan losses because of the commercial real estate loans.