Prosper-Linked Bonds Sold Last Year Face Moody's Cut

Moody’s Investors Service has said it may downgrade three bonds that were sold by Citigroup Inc. and backed by consumer loans originated by Prosper Marketplace Inc. after finding that the debt is going sour at a faster rate than the ratings firm previously expected.

The loans funding the securities are being repaid at a slower rate than projected, Moody’s said Thursday. In some cases missed payments are resulting in the underlying loans being written off as a loss.