Moody's has released a report detailing industry reaction to its changes in subordination levels required for US commercial mortgage-backed securities (CMBS).
The agency announced in April that it was going to raise the credit enhancement required for US conduits by half a notch to one notch. The move was a response to decreasing underwriting standards in the sector.
As a result, Moody's said, it found that "ratings shopping is alive and well". Since the application of the adjustment in July,