Scope Ratings today proposes an update of its General Structured Finance Rating Methodology. Scope’s existing ratings of structured finance instruments and covered bonds are not expected to be affected. The agency calls for comments from market participants by 7 January 2023.

The proposed update provides:

• Guidance on our analysis of insurance protection-enhanced transactions;
• A clarification of the scope of the methodology;
• A clarification of the incorporation of environmental, social and governance (ESG) factors into the rating analysis of structured finance instruments; and
• A clarification of the acceptable level of default probability for a certain instrument rating level.

Scope’s General Structured Finance Rating Methodology should be read in combination with the Methodology for Counterparty Risk in Structured Finance, along with complementary structured finance methodologies that are asset class specific.

Scope invites issuers, investors and other interested parties to comment on the methodology by 7 January 2023, as part of the agency’s ongoing commitment to transparency and open dialogue with market participants.

Please send your comments to consultation@scoperatings.com.

Scope will review and publish the content of any written response in accordance with regulatory requirements, unless the respondent has specifically requested confidentiality.

Download the proposed update here or on www.scoperatings.com.