Moody's to report on operational risk in securitization
Moody's Investors Service will offer its take on how credit in different geographic areas is affected by operational risk in securitization. The rating agency explains that a securitization transaction's performance depends on the effective performance of servicers, trustees and other parties, in addition to the creditworthiness of underlying obligors. "Operational risk has received substantial attention recently as several transactions, some with well-performing collateral, have experienced a substantial weakening of credit quality attributable primarily to nonperformance of a securitization party," said Nicolas Weill of Moody's. Structured Credit Investor (U.K.) (11/11)