S&P cuts Thornburg Mortgage to selective default

NEW YORK, March 3 (Reuters) - Standard & Poor's on Monday cut its ratings on Thornburg Mortgage Inc to "selective default," citing the company's announcement that it is in default with a counterparty on a reverse repurchase agreement.

Thornburg Mortgage (TMA.N: Quote, Profile, Research, Stock Buzz) said on Monday it has failed to meet a surge in margin calls, raising concern the jumbo mortgage lender might file for bankruptcy. S&P lowered its rating from "B-minus," the sixth-highest junk rating. (Reporting by Dena Aubin; Editing by Dan Grebler)