Request for Comment: Should An Identifier Be Added To Standard & Poor's Structured Finance Ratings?
Ratings Services said today that it is requesting comments on the proposed addition of an identifier to signify that a rating is on securities that have been issued out of a securitization structure. In light of the recent market dislocation, some market participants, including financial regulators, governmental bodies, and members of the investor community, have requested that rating agencies provide a means for identifying structured finance ratings and differentiating them from other types of ratings.
Request For Comment: Framework For Rating Notes Linked To Non-Interest-Rate References
The growing volume and increasing complexity of debt market instruments issued by financial institutions, as well as the potential for market misunderstanding of the terms of these instruments, have led us to review our approach to rating notes linked to non-interest-rate references. We are reviewing ways to enhance the transparency of issue credit ratings, particularly in investment guidelines that refer to credit ratings. We seek comments from market participants on alternatives that may provide greater transparency regarding the risks of these types of instruments.
Weekly Economic Update: Encouraging Economic Data (David Wyss, Chief Economist)
S&P's Chief Economist David Wyss notes that the economic data this week was generally more encouraging than it has been recently, with even the housing numbers looking better than we have been used to seeing. While S&P believes that overall our problems are not over, S&P feels that the housing market may be beginning to find a bottom, which helps bolster increased confidence in the outlook for a mild recession.
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