ABS: General Global Rating Methodology for Asset Backed Securities

Introduction

This report describes KBRA’s general global rating methodology for Asset Backed Securities (ABS). There are many sectors in the ABS market, including transactions backed by consumer assets, commercial assets, intellectual property and a variety of non-traditional collateral types. KBRA’s rating approach focuses upon the characteristics and key credit considerations specific to each sector. This methodology provides a general overview of the different categories of ABS, followed by a high-level discussion of broad elements of the rating approach typically applied to each category. It is intended to be used for ABS transaction types that are not addressed by other KBRA ABS methodologies which can be found on KBRA.com. The methodology also includes an overview of KBRA’s analysis of legal structures and the surveillance process.

In conjunction with this methodology KBRA employs the Global Structured…