Rating agency moves threaten ABS status

25 Feb, 2012

Moody''s downgrade of Italy and Spain last weeks ago combined with its decision to cap ratings for structured finance bonds from those countries to four notches above sovereign ratings has stripped a series of originators of the ability to achieve Triple A ratings. Originators from Italy and Spain join those in Greece, Ireland and Portugal in no longer being able to structure Triple A bonds under the Moody''s rules.

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