Moody's Investors Service has introduced additional information to its ABS and RMBS performance overviews in the Europe, Middle East & Africa (EMEA) region.
These changes provide further transparency both on the ratings process as well as on Moody's opinions relating to credit quality and expected transaction performance. This redesign is part of an ongoing effort by Moody's to provide the market with a high degree of transparency into the analytical process.
"In response to investor feedback, Performance Overviews will now contain the key assumptions in Moody's rating monitoring process on an ongoing basis," said Marie-Jeanne Kerschkamp, a Moody's team managing director. "Together with the pre-sale and new issue reports, which were re-launched in June this year, this process provides investors with a unique insight into the key considerations that drive Moody's ratings."
Moody's performance overview is a standardized report for each transaction, which is designed to aid investors' monitoring efforts. The report includes information about key transaction parties, including current ratings, a capital structure overview, support information such as target and current level of reserve funds, key performance information such as delinquencies, repossessions or losses as well as performance triggers.
Moody's publishes performance overviews after each interest payment date of a transaction. To date, Moody's has around 1,165 ABS and RMBS rated transactions outstanding in the EMEA region, and has published roughly 5,500 performance overviews this year.