The European Central Bank has published its pdf download Guideline ECB, which formally implements the revised rating requirements for asset-backed securities (ABSs) first announced by the ECB on 20 November 2009. Under the new the regime, the Eurosystem will require at least two ratings from an accepted external credit assessment institution for all ABSs issued as of 1 March 2010. In determining the eligibility of these ABSs, the Eurosystem will apply the 'second-best' rule, meaning that not only the best, but also the second-best available rating must comply with the minimum threshold applicable to ABSs. As of 1 March 2011, the second-best rule and the requirement to have at least two ratings will be applied to all ABSs, regardless of their date of issue.
The Guideline entered into force on 1 March 2010.
Table showing rating requirements for asset-backed securities
