Moody's on Friday released an updated analysis of Greek structured finance transactions, noting that it does not expect such transactions to retain or achieve ratings of A3 (sf) or higher.
The statement follows its downgrades of Greece's government bond ratings by three notches to B1 on Monday and of six Greek banks on Wednesday to ratings of Ba3 or lower.
Moody's placed or maintained all existing structured finance ratings in Greece on review for a downgrade in December 2010.
Regardless of the structural features or the amount of credit enhancement in place, structured finance transactions are not immune to the risk of certain high severity events. These events include a severe macro-economic decline and a deterioration in a sovereign or local banks' creditworthiness. Severe macro-economic decline disrupts asset performance. The deterioration of the banking system leads to operational risk from the potential disruption of the performance of key transaction parties, such as banks that act as servicers, according to a Moody's announcement.