According to a report from Moody's Investors Service today the earthquake which struck northern Japan on May 26, registering a 7.0, had limited impact on Japanese securitizations. The epicenter of the quake was offshore of the Miyagi Prefecture, located in Japan's north east.
Moody's stated that while some minor incidents were reported, it had received no reports of serious damage. The rating agency monitors 12 transactions, including private deals, among CMBS or NPL securitizations with underlying real estate assets in the five prefectures - Miyagi, Iwate, Yamagata, Akita and Aomori - of Japan's Tohoku or north-eastern region.
"We have so far received no reports on casualties for obligors who are members of underlying pools or of direct damage to the servicer's headquarters and branches," said Tetsuji Takenouchi, vice president, structured finance group, for Moody's Japan K.K.
Following the earthquake Moody's structured finance monitoring team surveyed the deals with exposures to Tohoku. They reported prompt response from servicers, securities firms and related parties. The monitoring team is responsible for roughly 450 transactions.