European Monetary Union

Rating Agency Developments

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On April 14, Moody’s said that the proposals to give EU-based authorities wide-ranging powers to intervene in the operation of failing credit institutions will be credit neutral for structured finance transactions involving EU banks if the final legislation incorporates appropriate safeguards and policy objectives. Moody’s Release.

On April 11, Fitch released updated rating guidelines for commercial paper note programs with external support. Fitch Release. Fitch Report.

On April 8, Moody’s extended the comment period from April 8 to April 22 for proposed changes to its modeling framework for cash-flow CLOs. Moody’s Release.

On April 8, S&P published its methodology for rating nonsovereign issuers and structured finance transactions above the related sovereign in the 17-member European Monetary Union. S&P Release.

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Rating Agency Developments

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On March 17, Fitch released new regional rating criteria for Latin America RMBS, and a Mexican RMBS Addendum, which incorporates an increased data analysis observation period for Mexican RMBS transactions. Fitch Release.

On March 17, S&P updated its methodology for rating unregulated issuers’ hybrid instruments and for classifying the equity content of these instruments. S&P Release.

On March 15, Fitch published its criteria for rating U.S. equity REITs and REOCs. Fitch Release.

On March 15, Fitch published its criteria for rating U.S. mortgage REITs and similar finance companies. Fitch Release.

On March 14, Fitch published a comment that the recent out-of-court settlement between the Lehman debtors and the Dante trustee leaves continuing conflicts of law and uncertainty for cash flow structured finance transactions that have interest and currency rate swaps and “flip clauses”. Fitch Comment.

On March 14, Fitch updated its structured finance counterparty criteria. Fitch Release.

On March 14, Fitch published its covered bonds counterparty criteria. Fitch Release.

On March 14, S&P requested comments on its proposed methodology for rating nonsovereign issuers and structured finance transactions that exceed European Monetary Union sovereign ratings. Comments must be submitted by March 28. S&P Release.

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