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Moody's: No new defaults in rated structured finance short-term credits in the past 4 years

June 26, 2014

For the fourth consecutive year, there were no

new defaults in Moody's-rated structured finance short-term credits,

according to a new report from Moody's Investors Service, "Structured

Finance Short-Term Rating Transitions and Defaults: 1983-2013." This

latest report is now available in the Ratings Analytics section of

As of the end of 2013, approximately 64% of short-term ratings consisted

of ABCP programs, compared with 71% three years earlier. At the same

time, the share of outstanding short-maturity tranches issued out of

asset-backed securities (ABS) transactions has trended up over the past

three years. Within these ABS short-term ratings, approximately 58%

consisted of auto loan-backed ABS and 17% of auto lease ABS.

Between 30 June 2012 and 31 December 2013, Moody's downgraded ratings on

three credits and upgraded ratings on 10 credits.

In 2013, there were no downgrades of P-1 rated credits, down sharply from

an 11.6% downgrade rate a year earlier.

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Source: EMBIN (Emerging Markets Business Information News)

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