ECB wants two ratings on ABS repo collateral
The European Central Bank (ECB) will require two ratings for securitisations it accepts as repo collateral from March next year in a move that analysts say will nudge originators away from its liquidity programmes.
Existing deals will be grandfathered until March 2011 but new deals will have to meet the requirement in 2010. The second best rating will be used to determine eligibility in the past the ECB has used the highest rating.
Under the Eurosystem rules, ABS collateral must be rated
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