structured finance

Greek structured finance transactions with AAA ratings have been downgraded to AA by Standard and Poors. The downgrade affects AAA tranches of asset-backed securities and residential mortgage-backed securities. All other tranches, with ratings below AAA, have been affirmed by the ratings agency. The news comes shortly after Moody’s announcement of a rating review for possible downgrade for Greek structured finance.

Moody’s Investors Service today placed the Aaa ratings of Greek asset-backed securities, residential mortgage-backed securities, collateralised loan obligations and covered bond transactions under review for possible downgrade. All such products bar one are included. (Moody’s does not rate any Greek commercial mortgage-backed securities.)

No new Aaa ratings will be issued to these structured finance transactions or covered bonds until a review – started February 4 – is completed. On completion, “existing and future ratings will be assessed using the new criteria,” says Moody’s.