4/28/2009

Moody's recently threatened to downgrade the AAA ratings of some covered bonds issued by U.K. financial institutions, prompting the issuers to look into alternative liquidity sources or a way to avoid the downgrades. If Moody's made good on its threat, it would restrict the financial institutions' access to the Special Liquidity Scheme from the Bank of England. Covered bonds that issuers use as collateral for the SLS need at least two AAA credit ratings.

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EuroWeek

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