No Flies on Fitch, or, Lehman Brothers Laffs

Fitch Ratings makes a pretty bold move in an announcement this morning on Business Wire:

Fitch Ratings has downgraded the long- and short-term Issuer Default Ratings (IDRs) and outstanding debt ratings of Lehman Brothers Holdings Inc, (LBHI), parent of Lehman Brothers Inc and other subsidiaries as follows:

–Long-term IDR to 'D' from 'A+';

–Short-term IDR to 'D' from 'F1';

–Senior debt to 'CCC' from 'A+';

–Subordinated debt to 'C' from 'A';

–Preferred stock to 'C' from 'A'.

Fitch's slogan? "Know Your Risk." Know, then, your risk on relying on their wisdom that a company with an A+ debt rating will keep that exalted status until shortly–but, mind you, very shortly!–after it declares bankruptcy.