Unified ratings: a victory for common sense
With Moody’s announcement of a new system of scores for structured finance deals last week, one dangerous idea has been killed. This was that rating agencies should give securitisations a special set of ratings, distinct from the ordinary triple-A to C scale. That would have defeated the purpose of ratings and it is a triumph for common sense that regulators’ bullying calls to segregate ABS have not prevailed. However, the rating agencies still have a very long way to go to win back the market’s trust.
Last week, the structured finance market scored a victory over political pressure as Moodys revealed that it had decided not to create a separate rating scale for structured finance products, as it suggested in a consultation paper in February.
In so doing, Moodys is taking the same route as
To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: firstname.lastname@example.org or find out more online here.