STOCK MARKET BSE NSE

Moody's Changes Its Approach to Rate Indian RMBS

Global rating agency Moody\'s tweaked its approach to rate Indian residential mortgage- backed securities (RMBS).

Published: 05th May 2016 09:05 PM  |   Last Updated: 05th May 2016 09:05 PM   |  A+A-

By PTI

NEW DELHI: Global rating agency Moody's today tweaked its approach to rate Indian residential mortgage- backed securities (RMBS), to reflect the country specific elements.

"Moody's Investors Service has published its approach to rating Indian residential mortgage-backed securities (RMBS) transactions, using the Moody's Individual Loan Analysis (MILAN) framework," the rating agency said in a statement.

Under this MILAN approach, Moody's perform a portfolio analysis, including a loan-by-loan assessment of the securitised collateral pool.

RMBS are pools of residential mortgage loans, which could include different types of fixed or floating rate loans, such as prime, sub-prime and others.

Moody's has used parameters from the New Securitisation Market (NSM) settings of MILAN for Indian residential mortgage pools, with some changes to reflect India-specific elements, it added.

"While we have used the NSM settings, we have made changes to some underlying assumptions and parameters for the Indian market, taking into account some distinctive characteristics of the country’s mortgage sector," the rating agency said.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp