Moody’s downgraded Series 2008 Dormitory Authority of the State of New York FHA-insured mortgage revenue bonds issued for Montefiore Medical Center to A2 from Aa2.
Friday’s rating action removes the rating from watch list for a possible downgrade.
Last October, as a result of the downgrade of Depfa Bank Plc’s long-term rating to A2, Moody’s placed 24 transactions issued through various local housing finance agencies on negative watch from Aa3 and the placement of its short-term rating of P-1 on negative watch.
The downgrade is due to exposure to Depfa through a repurchase agreement, which may be subject to increased principal repayment risk as a result of the bank’s reduced credit.
