UPDATE 1-Moody's warns of liquidity crunch for weak companies

(Reuters) - Liquidity, or available cash and ready assets, has been
declining since 2005 for the lowest-rated companies, Moody's
said in a report.




"If lenders turn cautious -- and eventually they will --
access to additional funding can't readily be assumed for
speculative-grade companies," Moody's said.


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UPDATE 1-Moody cuts 22 CSFB home equity tranches

(Reuters) - Moody's said the recent pace of losses has triggered credit
support to erode below targeted levels. The timing of losses
coupled with passing of performance triggers has caused the
protection available to the subordinate bonds to be diminished,
it said.




The loan collateral backing each deal placed on review
consists primarily of first-lien, subprime fixed and adjustable
rate mortgage loans, Moody's said.


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Covenant-lite loans not a main rating factor-Moody's

(Reuters) - "Covenants tend to rank a somewhat distant third to debt
cushion and security in terms of importance for recovery,"
Moody's analyst Michael Rowan said in a new report.




Recent trends toward increasingly larger senior debt
tranches, more sharing of collateral between creditor classes
and higher leverage may result in lower debt ratings in both
North American and European markets, the report said.


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UPDATE 1-Moody's may cut Bear Stearns, IndyMac ABS

(Reuters) - The collateral backing the securities under review consists
of primarily first lien, fixed and adjustable-rate and Alt-A
mortgage loans, Moody's said in a statement.




Moody's is reviewing 13 pieces of 8 deals sold from the
Bear Stearns Alt-A Trust Series and Bear Stearns Asset Backed
Securities I Trust Series, all of which are backed by loans
issued in 2006.


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Toll Brothers' debt outlook now negative - Moody's

(Reuters) - Toll's cash flow is also going to be sharply negative in
fiscal 2007 due to capital spending on high-rise projects in
New York City, Moody's said.




"Given the continued build out of the mid- to high-rise
towers that are currently under construction, it may be
challenging for Toll Brothers to begin generating significantly
positive cash flow in fiscal 2008," Moody's added.


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European automakers face rating challenge: Moody's

(Reuters) - "Moody's believes global demand for passenger cars and light vehicles should grow by 2-3 percent per annum in the long term," Falk Frey, a Moody's senior vice president, said in a report. "However, the challenges for European manufacturers to participate in this trend are immense."




The credit ratings agency said the main driver of the credit quality of European automakers in the short-to-medium term will be their dependency on Western European markets where demand is set to remain flat, leading to a continued battle for market share. French and Italian producers in particular are highly exposed to Western Europe, it said.


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Johnson Controls outlook positive, was stable-Moody's

(Reuters) - "The action follows significant reductions in the company's
leverage and expansion in its revenues, earnings and cash flows
subsequent to its late-2005 acquistion of York International
Corporation," Moody's said in a statement.




The bonds didn't trade on Monday, according to MarketAxess
data.


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CVS/Caremark outlook stable, was negative - Moody's

(Reuters) - Commercial paper, a form of short-term debt, is often
considered risky because it has to be refinanced more
frequently than long-term debt.




Moody's now rates CVS/Caremark's senior unsecured debt
"Baa2," the second-lowest investment grade.


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