Tuesday, February 16, 2010

S&P To Add Symbol To Global Structured Finance Ratings (Press release)

As market participants will be aware, under the European Regulation on Credit Rating Agencies (Regulation (EC) No 1060/2009) in force from December 2009 (the "Regulation"), credit rating agencies regulated within the European Union will be required to add a symbol to ratings on structured finance instruments.

Standard & Poor's Ratings Services will apply for registration under the Regulation. It is our intention that, on or before Sept. 7, 2010, we will give all ratings on structured finance instruments such an additional symbol. Having carefully considered various options, we believe that operationally it is most practical to have a global application of this rule and accordingly determined that our attribution of a symbol to structured finance instruments will be global.

The symbol that we will use is "(SF)". We will add this symbol as a subscript to the existing ratings symbology (see "Standard & Poor's Ratings Definitions," published Feb. 15, 2010). No other changes are intended to the rating categories applied to structured finance instruments.

We will designate structured finance instruments with a subscript irrespective of where they are issued, the location of the issuer, originator, or assets, or the subject of the instrument.

The Regulation provides a definition of "structured finance instrument," which cites the definition in the Capital Requirements Directive (Directive 2006/48/EC). In the coming months we will be considering which instruments will require the application of the subscript based on this definition. If any market participant wishes to provide us with their feedback on this point, we invite them to communicate with us through the following address: questions@standardandpoors.com. We would be grateful if all such feedback could reach us on or before March 5.

Related Research: Standard & Poor's Ratings Definitions, Feb. 15, 2010

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