S&P Places ACA On Negative Watch

Standard & Poor’s today placed on watch for downgrade ACA Capital’s A rating due to the company’s $1 billion third-quarter net loss, which S&P analysts think will inhibit ACA’s ability to attract future business.

  • 12 Nov 2007
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--Aaron Johnson

Standard & Poor’s today placed on watch for downgrade ACA Capital’s A rating due to the company’s $1 billion third-quarter net loss, which S&P analysts think will inhibit ACA’s ability to attract future business. Should ACA get downgraded, the company would have to answer liquidity calls on its $1.7 billion of unrealized structured credit mark-to-market losses (TS, 11/08), Alan Roseman, ACA ceo, said during the earnings call Thursday.

An action on ACA’s rating is expected within 90 days. Of the 15 monolines rated by S&P, ACA is the only one with an A rating, and also the only one rated by one agency. AA-rated PMI Guarantee is the only other S&P-rated monoline on negative watch while CIFG and RAM Reinsurance are both on negative outlook. “They’re just [in trouble],” an official at one CDO manager said of ACA. “Their main reputation is as a CDO asset manager and a lot of their CDOs are getting [downgraded]. We never saw very many ACA-wrapped deals.”

Since 1990, 59% of all companies placed on negative watch by S&P were downgraded, 35% have been affirmed, 5% had their rating withdrawn and 1% was were upgraded.

ACA officials did not return calls for comment.

  • 12 Nov 2007

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 3,136 9 12.62
2 Citi 2,562 6 10.31
3 Goldman Sachs 2,150 3 8.65
4 Credit Suisse 1,822 6 7.33
5 Societe Generale 1,814 4 7.30

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 22 May 2017
1 Citi 41,255.30 117 12.99%
2 Bank of America Merrill Lynch 37,631.92 109 11.85%
3 Wells Fargo Securities 32,082.26 89 10.11%
4 JPMorgan 20,969.41 64 6.60%
5 Credit Suisse 16,754.47 44 5.28%