Fed Rule for Eligibility of Rating Agencies for TALF

On December 4, the Fed adopted a final rule establishing a process for determining the eligibility of rating agencies to issue ratings on ABS, other than those backed by commercial real estate, to be accepted as collateral for TALF. The criteria include: (i) registration as an NRSRO with the SEC and (ii) experience rating the types of assets accepted as collateral for TALF. The final rule is substantively the same as the proposed rule announced on October 5 and will take effect with the February 2010 TALF subscription. Fed Release. Final Rule.