Standard & Poor’s has launched a new rating scale for secured bank loans in Europe, to be assigned to all new loans that it rates. The new Recovery Ratings should allow banks and investors to estimate loss-given default.
The Recovery Ratings were launched in the US in December, and in Canada in March this year. Since the US launch, Standard & Poor’s has assigned them to $95 billion of secured loans in the US. The launch of the ratings in Europe comes at a time of growing interest in secured l