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ARCHIVE | Criteria | Structured Finance | ABS: Rating Hybrid Securitizations Sep 99
Standard & Poors, Sep 1999
Abstract
Standard & Poor's views securitizations differently from corporate financings because of the fundamentally different characteristics of each. Securitized obligations are able to achieve higher ratings than corporate bonds largely due to the relative absence of business or operating risk of securitized transactions. As securitization techniques increasingly find their way into corporate transactions, however, the boundaries between securitization (or structured finance) ratings and corporate ratings are blurring. Issuers, for example, seek to securitize corporate-derived cashflows (such as renewable music licenses, film distribution rights, and leases of transportation equipment, including railcars, shipping containers, and trucks) by structuring transactions to resemble traditional securitizations of residential mortgage, credit card, and auto loan cashflows. To determine how best to blend structured and corporate analysis in...
Companies mentioned in this report are: Canada,United States of America (Unsolicited Ratings),United Mexican States
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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