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Moody’s Blasts Commercial-Mortgage Bond Offering It Didn’t Rate

Moody’s Investors Service cautioned investors on risks in a commercial-mortgage bond deal from JPMorgan Chase & Co, the first such transaction the rating company didn’t grade since at least August 2011.

The rankings on two investment-grade portions of the $1 billion deal sold by the lender Sept. 27 are too high because they don’t include a sufficient cushion against losses, Moody’s said in a report today. One of the classes would likely garner a speculative-grade ranking from the New York-based rating company, Moody’s said.