Moody's Investors Service claims to have provided a "jumpstart" for the securitization of middle-market business loans in Australia, with the development of a default risk assessment model based on credit data provided by the seven biggest Australian banks.

Morris Batty, the head of policy and portfolio management at ANZ Banking Group - one of the banks that took part in the project - described the initiative as "one of the most significant advances in the Australian credit markets in recent years." The data - 110,000 observations of 35,000 firms and 1,000 defaults - has been modeled using the rating agency's RiskCalc methodology, already in use in the U.S.

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