S&P Cuts Doral Financial On Dividend Suspension
NEW YORK (AP) ¿ Standard & Poor's Ratings Services lowered its ratings on all of Doral Financial Corp.'s preferred shares Friday, after the Puerto Rican bank suspended its dividend payments.
S&P cut its ratings by five notches, to "C'' from "CCC."
The ratings agency also placed its "B+" long-term counterparty credit rating on Doral on CreditWatch with negative implications.
All of the ratings are non-investment grade, or "junk" status.The downgrades follow the company's announcement, included in its annual report filed Friday, that suspended dividend payments on its three outstanding series of non-cumulative preferred stock and its outstanding series of cumulative preferred stock. S&P credit analyst Robert Hansen noted that the company's report also showed that credit quality continued to deteriorate in the fourth quarter, notably within the bank's mortgage portfolio. Fourth-quarter results were hurt by a large, noncash impairment on deferred tax assets and the establishment of a $21.6 million reserve for exposure to Lehman Brothers Inc.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV