Moody’s has flagged operational risk as one of the biggest dangers for structured finance deals in Greece, Ireland and Portugal. But the agency let Spanish deals off the hook, saying that “operational risk arising from a systemic banking crisis in Spain does not add materially to risk in individual structured finance transactions.”
The conclusions came in a report entitled Assessing the Impact of the Eurozone Sovereign Debt Crisis on Structured Finance Transactions, published on Wednesday morning. The rating agency looked at the feedback loops between sovereign weakness, banking system weakness, and macroeconomic problems.
The report concluded that the maximum ratings for