Lehman unwinds could hurt European bank ratings -S&P

NEW YORK, Sept 16 (Reuters) - Standard & Poor's said Tuesday the unwinding of trading positions following Lehman Brothers Holding Inc's bankruptcy filing may lead to "material" write-downs for European banks and could result in ratings actions.

The credit rating agency said the information it has received so far suggests the sector's direct net exposure to Lehman and its units is " generally moderate and manageable," S&P analyst Nick Hill said in a note.

"A more significant factor is likely to be a fall in asset prices as Lehman entities unwind trading positions and manage down their balance sheets," said the note. "This could lead to further material write-downs in certain European banks' third-quarter earnings."

While it is too early to evaluate the scale of any write-downs, "it could result in rating actions once further information becomes available," said Hill. (Reporting by Ciara Linnane; Editing by Leslie Adler)