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SAN FRANCISCO (MarketWatch) — Moody’s Investors Service on Friday placed Lehman
Brothers Holdings’ A1 rating on review for a possible downgrade. The move follows
Lehman’s announcement that Chief Financial Officer Erin Callan is leaving. The
ratings agency noted that although the purpose of the management change appears
to be an effort to assure accountability for its losses and to strengthen risk
and financial controls, the decision may, in fact, further erode investor
confidence. Moody’s review will focus on the degree to which Lehman’s various
franchises have been affected by recent market conditions and on potential
further write-downs within Lehman’s residential and commercial mortgage
portfolios. Signs of franchise erosion or additional losses are likely to result
in a downgrade, it warned.

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Technorati Tags: A1, Accountability, Callan, Cfo, Chief Financial Officer, Commercial Mortgage, Erosion, Franchise, Franchises, Investor Confidence, Lehman Brothers, Lehman Brothers Holdings, Losses, Management Change, Marketwatch, Moody S Investors Service, Mortgage Portfolios, Ouster, San Francisco, Signs