Moody’s readies mass CLO upgrades on methodology change

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Moody’s readies mass CLO upgrades on methodology change

Moody's 230x150
ARCHIV: Ein Schild weist in New York, USA, auf den Sitz der Ratingagentur Moody's hin (Foto vom 23.09.12). Die Ratingagentur Moody's hat Frankreich das Spitzenrating entzogen. Die Bewertung fuer Staatsanleihen wurde um eine Stufe von Aaa auf Aa1 gesenkt, wie Moody's am Montagabend (19.11.12) mitteilte. (zu dapd-Text) Foto: Oliver Lang/dapd | Oliver Lang/dapd

Moody’s has put 188 CLO tranches issued by 114 US CLOs on review for possible upgrade, following a change in how its CLO methodology treats leveraged loans on negative watch. But the shift will make it harder to analyse CLO quality, as weighted average ratings will be dispersed more widely and documentation differences will become more important.

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