• Most Popular
  • Most Shared

UDPATE 1-Fitch may cut CIBC on mortgage, guarantor exposure

Wed Dec 19, 2007 4:15pm EST

Stocks

   

(Adds details)

Stocks  |  Bonds

NEW YORK, Dec 19 (Reuters) - Fitch Ratings on Wednesday said it may cut its ratings on Canadian Imperial Bank of Commerce (CM.TO), citing the bank's significant exposure to residential mortgage-backed debt.

CIBC has exposures to residential mortgages via structured deals known as collateralized debt obligations, Fitch said in a statement. These exposures were hedged with a financial guarantor but this guarantor has now weakened, reducing the value of the contracts, the rating agency said.

CIBC said on Wednesday it was likely to report a large charge in its first-quarter results from protection it purchases from troubled bond insurer ACA Financial Guaranty. For details, see [ID:nN19631558].

"As disclosed today, CIBC's mark against this exposure was $2 billion at Nov. 30, 2007," Fitch said. "This means CIBC will most likely take a significant charge in the current quarter (first quarter 2008) against this exposure."

Fitch rates CIBC "AA-minus," the fourth highest investment grade. (Reporting by Karen Brettell; Editing by James Dalgleish)

Stocks
Bonds


More from Reuters

Joint Terminal Attack Controller SSgt Clinton J. Herbison, a U.S. Airman from the 817 Expeditionary Air Support Operations Squadron (EASOS) takes a break during a night mission near Honaker Miracle camp at the Pesh valley of Kunar Province August 12, 2009. Credit: REUTERS/Carlos Barria

Pictures of the Year

A look at the best photos of 2009.  Slideshow 

    PICTURES
    The Dalai Lama jokes with a nasal spray after being asked his opinion on the swine flu during a press conference after his first lecture in Lausanne, Switzerland, August 4, 2009. REUTERS/ Valentin Flauraud

    What a wacky year it's been...

    Um, what's up the Dalai Lama's nose? "Oddly Enough" editor Bob Basler rounds up the goofiest photos of the year.  Full Article 

    Oddly Enough
    A caution sign is seen next to a stock board at the Australian Securities Exchange (ASX) in Sydney September 5, 2008. REUTERS/Daniel Munoz
    Political Risk in 2010:

    Don't say we didn't warn you

    With the financial crisis (mostly) in the past, U.S. investors are eying a fresh start to the coming year. Here's a look at what speedbumps lie ahead.  Full Article 

    Global Markets