Moody's Investors Service will be publishing a series of reports that will detail its views on how operational risks in ABS impact credit in different jurisdictions and geographic regions.

In a special comment published yesterday, the rating firm said that the performance of a securitization depends not only on the creditworthiness of the underlying pool of obligors (i.e., collateral risk) but also on the effective performance by the different parties including servicers, calculation agents,  trustees, and cash managers (i.e., operational risk). The specific details regarding that performance will be a lot different based on the  specific legal and operational environments prevailing in each jurisdiction.

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