S&P cuts ratings of $4.6 billion of subprime mortgage backed securities

Standard & Poor’s (S&P) cut its ratings on more than $4.6 billion worth of securities backed by subprime mortgages.

The mortgage-backed securities had their ratings dropped to “BBB” which is the lowest tier of investor grade.  Moody has recently lowered ratings on bonds from home builders.

Read more about S&P dropping the rating on subprime mortgage-backed securities at Reuters.