|
|
 |
|
Viewing report
|
|
|
|
ARCHIVE | Criteria | Structured Finance | ABS: New Rating Approach Gives Private-Sector Issuers Credit for Partial Coverage of Transfer and Convertibility Risk Oct 00
Standard & Poors, Oct 2000
Abstract
Editor's Note: This criteria is no longer current. Standard & Poor's has developed a new approach for assessing transactions that utilize transfer and convertibility (T&C) insurance to enhance an issue's foreign currency rating. This new approach is applicable to obligations issued by private-sector entities in subinvestment and marginal investment-grade countries. It uses a proprietary probability-based model to allow issuers with an appropriately structured transaction to obtain potentially significant rating enhancement with a T&C insurance policy whose coverage is less than the issue's total debt service to maturity. The ability to obtain rating enhancement with partial T&C insurance coverage offers three key potential benefits: Lower cost for issuers, Greater portfolio diversification for investors and insurers, and Increased insurance capacity for all...
Companies mentioned in this report are: Inter-American Development Bank,International Finance Corp.
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.
|
|
|
|
