Moody's Investors Service last week upgraded the unwrapped and underlying ratings of deals backed by diversified payment rights (DPRs) that have Turkiye Garanti Bankasi (Garantibank), Turkiye Is Bankasi (Isbank) and Akbank as originators. The move brings the agency's grade for these DPR deals from Turkey's top tier banks in line with the rating on their credit card backed transactions and increases the breathing room of monolines with exposure to the Turkish DPR asset class.

The agency boosted to Baa2' from Baa3' the rating on Garantibank's 2005-E and -I tranches for a total $150 million and Isbank's 2004-C and -D tranches for a total $300 million. That same upgrade was applied to the underlying ratings of a host of DPR deals wrapped by Ambac, Assured Guaranty, CIFG, FGIC, FSA, and MBIA, Radian, and XLCA. Monolines egged on a Turkish feeding frenzy last year that amounted to $3.2 billion in wrapped deals.

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