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.