Reply #52: Moody's may cut BAWAG (Austria) on Refco exposure [View All]

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T145704Z_01_WNA0392_RTRIDST_0_FINANCIAL-BAWAG-MOODY-S-URGENT.XML

NEW YORK, Oct 18 (Reuters) - Moody's Investors Service on Tuesday said it may cut the debt ratings of Austrian Bank BAWAG P.S.K., citing a $425 million line of credit at risk linked to Refco Inc. (RFX.N: Quote, Profile, Research), which filed for bankruptcy protection this week.

"Moody's is concerned that the potential loss content of this exposure could negatively affect the bank's capitalization," the rating agency said.

Moody's said it may cut the bank's "A2" long-term rating and its "C-plus" financial strength rating.

Moody's affirmed the bank's "P-1" short-term rating.

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