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1990, 59% of all companies placed on negative watch by S&P were downgraded, 35% have been affirmed, 5% had their rating withdrawn and 1% was were upgraded.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 Share % by Volume
1 Societe Generale 15.35
2 Rabobank 14.41
3 Morgan Stanley 11.73
4 Barclays 8.99
5 Credit Agricole 7.57

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 27 Feb 2017
1 Wells Fargo Securities 11,897.40 33 11.83%
2 Bank of America Merrill Lynch 9,837.56 29 9.78%
3 Citi 9,714.54 32 9.66%
4 JPMorgan 7,997.38 24 7.95%
5 Credit Suisse 6,335.67 14 6.30%