"Bowie Bond" Downgrade Dims Prospects For IP Securitization

Law360, New York (March 22, 2004, 12:00 AM EST) -- A downgrade of David Bowie’s “Bowie bonds” to near-junk status raises questions about the future of intellectual property securitization, observers say.

Credit rating agency Moody's Investors Service downgraded the bonds on Friday to Baa3, just one notch above junk status. The notes were originally rated "A3,” the seventh highest rating on Moody's scale.

In taking the action, the agency cited lower-than- expected revenues due to the weaker sales of recorded music and also because the entity that provides credit support to the issue has itself been...
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