Dominion Bond Rating Service said in a report today that the automated underwriting used by non-bank specialty finance companies has led to a pick-up in small, unsecured business lending. These lenders are now considering issuance of asset-backed securities in order to fund additional lending.

The credit rating agency did not say whether it had been asked to review any such deals. However it has a "positive inital view" on the sector and will monitor developments.

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