Scope updates its General Structured Finance Rating Methodology
Scope Ratings today updates its General Structured Finance Rating Methodology. Scope’s existing ratings of structured finance instruments and covered bonds are not expected to be affected.
The 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 Counterparty Risk Methodology, along with complementary structured finance methodologies that are asset class specific.
Scope did not receive comments from market participants during the request-for-comments period, which expired on 07 January 2023.