Standard & Poor's Ratings Services said U.S. financial institutions with business profiles that have a heavy concentration in real estate may suffer a disproportionate negative effect on earnings relative to those financial institutions with a higher degree of diversification.'We believe the large losses posted to date so early in this credit cycle and the continued rapid pace of loan deterioration indicate that this credit cycle is poised to be more severe than prior ones. If we do approach a new peak of cycle scenario in 2008-2009, we could see major downgrades and even some insolvencies,' S&P said.
