Moody's Investors Service has cut Capmark Financial Group Inc.'s debt rating because the real estate lender's plan to avoid bankruptcy by selling assets may reduce income needed to repay bondholders.

Moody's last week dropped its rating on Capmark's senior unsecured debt to C, from Caa1. Capmark's plan to sell its North American servicing and mortgage businesses and a decline in the value of its remaining units increase the possibility it will not be able to pay creditors, Moody's said.

"The unsecured lenders and bondholders, either in a default or a restructuring scenario, would experience substantial losses," Moody's said.

Capmark, after announcing a second-quarter loss of about $1.6 billion last week, said it may file for bankruptcy.

Berkshire Hathaway Inc. and Leucadia National Corp. agreed to pay as much as $490 million for the servicing and mortgage units last week.

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