Moody’s Publishes Methodology for Rating Chinese RMBS

On Tuesday, August 16th, Moody’s Investor Services published its approach to rating Chinese RMBS transactions using the Moody’s Individual Loan Analysis (MILAN) framework. Moody’s indicated that they will use the MILAN approach in conjunction with their existing methodologies to rate RMBS in China.

As Moody’s explains, MILAN is “a key element of its loan and portfolio level evaluation. The calibration of MILAN for China was primarily driven by benchmarking the Chinese residential real-estate market to other jurisdictions that also use MILAN. [Moody’s] has used many parameters from the “New Securitization Market” settings of MILAN for Chinese residential mortgage pools with a few changes to reflect Chinese-specific elements.”

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