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S&PBulletin: BlackRock Rtgs Unaffected By Anthracite's Default
The following is a press release from Standard & Poor's: NEW YORK (Standard & Poor's) Dec. 2, 2009--Standard & Poor's Ratings Services said today that its ratings on BlackRock Inc. are not affected by the default of Anthracite Capital Inc.
Anthracite is a stand-alone, publicly held company that invests in high-yield commercial real estate loans and securities. BlackRock has an indirect relationship as manager of Anthracite's investments. BlackRock also has a small equity stake in Anthracite and has extended a $33.5 million secured loan to the company.
It has written down that loan to $28.5 million, the value of the collateral, as of Sept. 30, 2009. In our opinion, BlackRock's financial exposure to Anthracite is immaterial to the rating.
However, we believe BlackRock's relationship with Anthracite subjects it to reputational risk, particularly given BlackRock's expertise as an investment adviser on real-estate-related assets. Our outlook on BlackRock remains negative, reflecting our concerns about the company's refinancing and the integration risk associated with its just-completed acquisition of Barclays Global Investors. Primary Credit Analyst: Charles D Rauch, New York (1) 212-438-7401; firstname.lastname@example.org Secondary Credit Analyst: Diane Hinton, New York (1) 212-438-4415; email@example.com Analytic services provided by Standard & Poor's Ratings Services (" Ratings Services ") are the result of separate activities designed to preserve the independence and objectivity of ratings opinions.
The credit ratings and observations contained herein are solely statements of opinion and not statements of fact or recommendations to purchase, hold, or sell any securities or make any other investment decisions. Accordingly, any user of the information contained herein should not rely on any credit rating or other opinion contained herein in making any investment decision. Ratings are based on information received by Ratings Services.
Other divisions of Standard & Poor's may have information that is not available to Ratings Services. Standard & Poor's has established policies and procedures to maintain the confidentiality of non-public information received during the ratings process. Ratings Services receives compensation for its ratings.
Such compensation is normally paid either by the issuers of such securities or third parties participating in marketing the securities. While Standard & Poor's reserves the right to disseminate the rating, it receives no payment for doing so, except for subscriptions to its publications. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.
Copyright (c) 2009, Standard & Poor's Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. (END) Dow Jones Newswires December 02, 2009 17:47 ET (22:47 GMT)
Copyright © TD Waterhouse Investor Services (Europe) Limited. All rights reserved
S&P misses the point as well. BRK may claim to be a secured creditor but it is their lousy carbon funds which are securing the loan. They are the reason we are in this mess and in bankruptcy there is no way this self dealing loan will stand up as a secured debt. I don't think that 28 million is material to BLK but when a case comes down to self dealing the remedy is to stick the bad loans on the investment advisor and make him cough up what was paid originally. That would be material.
That is true and not true. They are definitely financially isplated. Their reputation is not bullet proof. There are any number of moves that could be made by BlackRock that have not been made, that could smooth the waters. and actually make them a profoit in the long run. I don't think BlackRock has moved on just yet.
"However, we believe BlackRock's relationship with Anthracite subjects it to reputational risk, particularly given BlackRock's expertise as an investment adviser on real-estate-related assets."
How could the United States Treasury allow Blackrock to participate in the PPIP? AHR is down over 90% and we should allow them to manage more distressed assets?
Until AHR Shareholders are made "whole" again, Blackrock should never be allowed to use tax dollars for this purpose.
1) Anthracite is externally managed by a subsidiary of BlackRock, Inc. Anthracite Capital is a specialty finance company focused on investments in high yield commercial real estate loans and commercial real estate.
2) In July the Treasury selected Blackrock (among others) to raise at least $500 million. This amount, combined with as much as $30 billion of Treasury equity and debt, will be used to purchase troubled assets.
Join me in emailing the following people. Each person here is close to the situation or should report on this very interesting story. AHR is saved or Blackrock is not allowed in to continue in PPIP.