Agency News / 09.07.2015

The Methodology Committee of AK&M Rating Agency has approved the updated version of the Credit Rating Methodology for Mortgage Participation Securities Secured by Commercial Real Estate.

The changes and additions reflected in the updated methodology include a wider range of parameters influencing credit ratings of mortgage-backed securities, adjustments to weight factors taken account of in the rating model, updated criteria rules for the assessment of specific creditworthiness factors. Projected yield on mortgage participation certificates to maturity, a key indicator underlying investment decisions, is regarded as one of the main elements of the rating analysis for a financial instrument.

The updated methodology reflects AK&M Rating Agency's experience in assigning ratings and conducting express credit worthiness reviews of mortgage participation certificates secured by commercial real estate.

Within one month following the publication of this press release the Agency will estimate the need to update the credit ratings for mortgage participation certificates assigned prior to the change in methodology.