blogger interrupted

Let’s see if the market reacts to this downgrade review the way they reacted to the absurd upgrade today.  

Moody’s Investors Service on Monday placed the ratings of National City Corp (NCC) on review for a possible downgrade on concerns about the bank’s exposure to real estate.

Moody’s rates the bank’s senior debt at A3, three notches above speculative, or ‘junk’ grade.

The review will focus on National City’s exposure to “significant real estate-related credit costs,” analysts said in a note.

“Moody’s notes that the magnitude of these credit costs relative to the firm’s earnings from its core banking franchise make the timing of its return to profitability uncertain,” it said.

National City lost 63% of its value today.  It will open tomorrow at $1.36, and in afterhours traded up 11%.  But that was before this announcement from Moody’s.  At $1.36, NCC’s market capitalization is $1 billion.  Not much.

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