Regulatory Alerts2026-08-11
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VIS Credit Rating Company Limited Structured Finance Rating Methodology June 2026
VIS Credit Rating Company Limited has reviewed its Structured Finance methodology dated May 2025, confirming that the fundamental criteria remain unchanged. The document outlines the rating framework for securitization transactions, detailing the evaluation of transaction structure, asset quality, cash flow adequacy, legal isolation of assets, servicer competence, and credit enhancements. It specifies that ratings for Future Flow Securitization (FFS) are linked to the originator's credit quality unless specific structural protections are in place, while Asset-Backed Securitization (ABS) ratings can be higher than the originator's due to asset isolation. The methodology also addresses internal and external credit enhancement mechanisms, including over-collateralization, excess spread accounts, and performance triggers, to mitigate credit risk for investors.
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