However, credit rating agencies such as Moody’s, and S&P progressively downgraded securitized assets value ratings as the crisis progresses Notably, on the last day of Jan 2008, Standard and Poor’s, a credit-rating agency, downgraded over 8000 securitized assets As results of increased downgrading of securitized assets led to more doubts to the value of the statement of firm’s financial position of financial firms However, financial institution responded by re-evaluating the composition and size of their financial position In short, they removed of risky assets and replaced them with safer assets as well as contracting their balance sheet
Received on Wed Dec 16 2020 - 01:25:04 CET