In light of regulatory trends, Moody’s Investor Service said that bank-sponsored ABS can face rating downgrades in the absence of adjustments to these programs' structural features or, as an alternative, an assurance from the Federal Deposit Insurance Corp. (FDIC).

The June 1 AutoNavigator report issued by Moody’s looked at the risk posed to ABCP investors when custodian or sponsor companies enter into FDIC receivership.

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