Ridgeway Court CDO Shows S&P Didn’t Follow Own Rating Downgrades

On the same day in June 2007 that Standard & Poor’s decided large-scale downgrades of mortgage-backed securities might be necessary as the subprime market fell apart, S&P analysts awarded $2.8 billion of a collateralized debt obligation called Ridgeway Court Funding II Ltd. a AAA grade, the best they could possibly bestow.

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