July 18 Peter Eastham, who headed Standard & Poor's Ratings Services' New York-based commercial mortgage-backed securities (CMBS) rating group, will move to a senior position in Australia, the Wall Street Journal reported, citing people with knowledge of the matter.
About a third of the group has been let go, including Kurt Pollem, Barbara Hoeltz and analyst Brian Snow, the report added.(on.wsj.com/WjqTRZ)
S&P, once the top player in CMBS ratings, lost its grip on the market in 2011 after a disastrous ratings slip-up on a $1.5 billion deal led by Goldman Sachs and Citigroup. (reut.rs/1tfEZi1)
S&P, which is owned by McGraw Hill Financial Inc, has struggled to rebuild its once-dominant market share in the rating of commercial mortgage-backed securities.
The debacle badly eroded S&P's credibility and left it effectively frozen out the sector. It was kept out of so-called conduits, the multiple-borrower deals that make up the majority of CMBS transactions, for more than a year.
The rating agency plans to merge its CMBS ratings team with its analytics division that monitors bond performance, according to the Journal.
Eastham had succeeded Barbara Duka as the head of CMBS team in February 2012. (Editing by Lisa Shumaker)