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Article: Chevy Chase Junk Bonds Downgraded;Moody's Rating Service Cites S&L's Softening Real Estate Holdings
- Article from:
- The Washington Post
- Article date:
- August 25, 1990
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Chevy Chase Federal Savings Bank, Maryland's largest savings and
loan, had its junk bonds downgraded by Moody's Investors Service to
reflect the rating company's concern over the amount of troubled real
estate loans on Chevy Chase's books.
"We believe there has been a significant deterioration in the
asset quality of the thrift," Moody's analyst Blaine Frantz said
yesterday. "The softening of the Washington metropolitan area real
estate market has definitely impacted a number of institutions, Chevy
Chase included."
Unlike many other local financial institutions, Chevy Chase had
avoided a downgrading of its high-yield, high-risk junk bonds until
this week. Perpetual Savings Bank, Sovran ...