S&P may cut $6.42 bln CDOs affecting 149 tranches

NEW YORK, Jan 4 (Reuters)- Standard & Poor's may cut the rating on $6.42 billion of collateralized debt obligations (CDOs) following downgrades to billions of dollars worth of second-lien residential mortgage-backed securities last month.

S&P said the action affects 149 tranches from 43 U.S. cash flow and hybrid CDOs of asset-backed securities. In December, S&P cut 793 classes of U.S. RMBS backed by closed-end second-lien mortgage collateral issued in 2004, 2005, and 2006. For details, see [ID:nN04306907].