Because the securitization entity's credit rating is based on the quality of the transferred receivables,it will be the same as the rating of the transferor's general debt.

Question

Quizplus · Accepted Answer

The securitization entity's credit rating is primarily based on the quality of the transferred receivables and the structure of the securitization, including any enhancements, rather than directly on the transferor's general debt rating. This can result in the securitization entity having a different (often higher) credit rating than the transferor's general debt.

Because the Securitization Entity's Credit Rating Is Based on the Quality