Glossary

Rating Agency

In one sentence

A firm assigning credit ratings to securitized debt, whose criteria shape how loans are structured and pooled.

The longer version

Rating agencies rate the bonds in a securitization, and their criteria influence loan structures, reserves, and legal opinions well before securitization. Rating agency confirmations gate certain post-closing actions.

Defeasance and some assumptions require rating agency confirmation, tying loan-level events to the securitization's rating.

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