Ratings Actions

http://www.moodys.com/moodys/cust/research/MDCdocs/17/2007400000619506.asp?namedEntity=Rating+Action&doc_id=2007400000619506&frameOfRef=structured

Moody's downgraded a large Credit Suisse structure. Some securities went all the way from Aaa to below investment grade. Ouch.

Last week, Fitch hammered several tranches in a similar fashion: AAA to below investment grade.

http://www.fitchratings.com/corporate/sectors/rmbs_rtng_actn_rpt.cfm?sector_flag=3&marketsector=2&detail=&body_content=rtng_actn

Tread lightly if you want to buy financial stocks.

Vulnerable Banks

Please click on the above table to expand.

Commercial loan concentration = (commercial & land development loans + commercial real estate loans + commercial & industrial loans) / earning assets

junior lien concentration = (junior lien loans + home equity loans) / earning assets

goodwill ratio = goodwill / equity capital

The list is comprised of banks with at least $20 billion in earning assets and a commercial loan concentration of at least 20%.