Europe ABS ratings change could cause deal flood

Author: | Published: 26 Nov 2009

The European Central Bank’s (ECB) requirement of two qualified ratings on asset-backed securitisations (ABS) could force a rush of struggling institutions to originate new deals.

From March 2010 new ABS deals with the bank must have ratings equivalent to AAA from two of the rating agencies. This will bring standards closer to those that...