Structured Finance

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 23, S&P issued a request for comment on proposed changes to its covered bond criteria for assessing counterparty and supporting party risk. Comments must be submitted by May 4. S&P Release.

On March 21, Fitch updated its criteria for stressing interest rate risk in structured finance transactions. The criteria have been extended to transaction cash flows indexed to interest reference rates for Australian Dollars, New Zealand Dollars, Korean Won, Singapore Dollars, Taiwanese Dollars, Indian Rupee, and South African Rand. Fitch Release.

On March 18, Fitch updated its methodology for rating debt of Native American gaming issuers. Fitch Release.

On March 21 and 22, DBRS updated its methodologies in several areas, including: Canadian Residential Mortgage Servicer Evaluations, Canadian Mutual Fund Companies, Canadian Mortgage Insurance Companies, and Canadian Covered Bonds. DBRS Methodologies.

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Rating Agency Developments

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On March 2, Moody’s released its global structured finance operational risk guidelines. Moody’s Methodology.

On March 2, Moody’s released its methodology for rating securities backed by utility cost recovery charges, which are established by special legislation and financing orders issued by utility regulatory bodies. Moody’s Methodology.

On March 1, Fitch updated its criteria report outlining its methodology for analyzing ratings for transaction-specific support facilities provided to ABCP conduits. Fitch Release.

On February 28, Fitch released updated criteria report for analyzing U.S. Public Finance variable-rate demand obligations issued with external liquidity support. Fitch Release.

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Rating Agency Updates

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On September 21, Moody’s released a report explaining its views on legal risk in structured finance ratings. Moody’s Release.

On September 17, S&P proposed criteria for evaluating counterparty risk for funds with principal stability fund ratings and fund credit quality ratings, including the use of repos. Comments are requested by October 18.  S&P.

On September 17, Fitch updated its global rating criteria for cash flow analysis of CDOs. Fitch Release. Fitch Report.

On September 22, Moody’s published a rating methodology to explain its approach in analyzing the intrinsic financial strength of English housing associations. Moody’s Release.

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