Italy has nurtured the growth of what has become one of the largest markets for non-performing loan securitizations. According to Moody's Investor Services, since implementing its securitization law 130/99, Italy has seen over E31 billion (US$35 billion) of NPL portfolios securitized. A by-product of Italy's extensive campaign has resulted in the development of a more transparent rating methodology that could, in the future, be applied to other NPL markets.

"Due to the fact that we have seen over 25 transactions in Italy, we have been able to develop quite a sophisticated methodology, and there's really no reason why we can't look at countries who are considering developing [NPLs] in their portfolios," said one analyst at Moody's.

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