Contrary to what was reported in the June 28 issue, Duff & Phelps (DCR) is not dropping the use of an offshore liquidity reserve when rating securitizations above the local currency rating of the sovereign. Rather, it has modified its requirement to promote its use and provide additional protection to investors.

An offshore reserve account is still needed, but need not be fully funded at the onset of the transaction, with full funding only necessary if the sovereign is downgraded.

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