Structured Finance qualifies structured finance products and debt instruments issued through SPV (Special Purpose Vehicle) with the guarantee of one or more assets that generate a predictable cash flow.
Asset securitization allows a series of homogeneous assets generating predictable flows (loans, accounts receivable, and other financial assets) are grouped, usually into a vehicle that is legally separate from the originator (Special Purpose Vehicle), with the principal objective being to obtain financing by selling bonds issued by said SPV to investors (Asset-Backed Securities).
The assessment of the Structured finance depends on:
EthiFinance Ratings has developed a specific methodology for the rating of collection rights derived from the deficits of the different utility systems. This methodology is applicable both to rate the rights themselves, as well as to rate the issuance of securities whose underlying assets are these collection rights. Collection rights that are securitized will be analysed using this rating criteria in conjunction with Axesor’s structured finance trade receivables methodology.