The European Central Bank (ECB) has relaxed its collateral requirements for repo eligibility in a move that encourages new ABS activity.

The ABS rating requirements will be relaxed on undetermined date, although "only where new non-ratings-based criteria in addition to the already existing criteria are satisfied," Barclays Capital analysts said in a report. "No change is made to the minimum ratings requirements that must be satisfied for the life of an eligible ABS security."

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