The Wall Street Journal-20080206-In Brief

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In Brief

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Fitch Is Studying

CDO-Rating Change

Fitch Ratings is weighing changes in how it rates corporate collateralized debt obligations, in hopes of bringing "an important level of transparency" to the structured-finance market. The unit of Fimalac SA published a draft of proposed revisions to its methodology. The move comes a day after the Moody's Investors Service unit of Moody's Corp. said it is considering a new way of rating mortgage- related securities and other structured-finance vehicles.

Suitor May Return

For Northern Rock

Olivant Advisers Ltd., which unexpectedly pulled out of the race for Northern Rock PLC late Monday, said yesterday that it could re-enter the fray to take over management of the U.K. mortgage lender if the government improved the terms of its financing package. A spokesman for Olivant, led by U.K. banker Luqman Arnold, said the investment firm isn't ruling out returning with a proposal if it becomes "commercially viable" to do so.

Hannover Re AG

To Top Forecast

German reinsurer Hannover Re AG said it expects to top its recent 2007 earnings forecast. It said net profit will be higher than its forecast of about 700 million euros (about $1 billion). Chief Executive Wilhelm Zeller said the reduced value of subprime mortgages and problems facing monoline insurers in the U.S. are "not an issue." He reiterated Hannover Re expects a maximum loss of 10 million euros from subprime residential mortgage-backed securities.