Agency News / 06.11.2015

AK&M Rating Agency has upgraded the rating methodology for mortgage participation certificates (MPC).

The updated methodology makes it possible to assess the credit quality of mortgage participation certificates secured by both commercial and residential real estate. This update entailed changes in certain criteria rules and calculation algorithms for general creditworthiness indicators based on specific groups of factors.

The methodology now includes an in-depth analysis of affiliation between the parties to the deal and a number of stop factors (triggers) constraining the MPC rating regardless of the integral creditworthiness index. A key stop factor is the availability of non-core assets in the mortgage collateral (MPCs for another mortgage collateral as well as land plots outside of the property complex).

The recent updates do not necessitate a revision of the current ratings assigned by AK&M Rating Agency to MPCs.