 |
| Jay Eisbruck |
Moody's Investors Service has started an asset-backed servicer ratings group and is planning to release its first rating, on a credit card issuer, later this month, according to Jay Eisbruck, a managing director in term ABS ratings. He declined to name the issuer. He says the rating agency is starting the group now to address investor concerns about seller-servicer issues, noting that servicing is important in underlying assets such as credit cards because these transactions are sold out of revolving master trust structures. Moody's plans to extend the servicer ratings to student loan issuers as well and will rate issuers on a scale of one to five, with one being the highest. Linda Stesney, also a managing director, is heading up the process and the servicer rating group will also work with the asset specialists, such as for credit cards and student loans.
Standard & Poor's also provides servicer ratings as part of a separate group; MBNA Corp. last year obtained a "strong" S&P rating (BW, 10/6) as part of its efforts to provide greater transparency for investors (BW, 2/2).
