For Public Comments on Planned Establishment of Rating Methodology for Country Ceiling for Structured Finance Products and on Revisions to Rating Methodology for ABCP Programs
JCR News
For Public Comments on Planned Establishment of Rating Methodology for Country Ceiling for Structured Finance Products and on Revisions to Rating Methodology for ABCP Programs
Apr. 27, 2016
Japan Credit Rating Agency, Ltd. (JCR) is considering establishment of rating methodology for Country Ceiling for Structured Finance Products and revisions to the rating methodology for ABCP Programs, and presents their overview as follows, and JCR welcomes any comments/ opinions on the drafts for them.
1. Overview
(1) Country Ceiling for Structured Finance Products
With increasing needs for rating of cross-border financial instruments in recent years, JCR decided to establish its rating methodology for country ceiling for structured finance products. JCR forms its opinions on how a sovereign credit rating and country ceiling limit levels of a structured finance rating as shown in the following Draft for Public Comment No. 1.
(2) ABCP Programs
JCR is considering adding a rating methodology for ABCP programs with internal credit enhancement of senior-subordinated structure backed by monetary claims to the current rating methodology for ABCP programs and making revisions to it as shown in the following Draft for Public Comment No. 2.
2. Next Steps
JCR wishes to invite public comments on the draft methodologies. Comments are welcomed until May 23 at JCR's website, by an E-mail form available under "Contact Us." JCR plans to finalize it as credit rating methodology in a week's time. With these new and revised rating methodologies, JCR expects no existing rating to be reviewed accordingly.
