Mixed industry reaction to Moody’s CCP ratings

Clearing members say narrow definition of default may limit ratings’ usefulness

Moodys ratings
Moody's assigned a rating of Aaa to four counterparties in its first wave of CCP ratings

Despite increased attention on the risks posed by central counterparties (CCPs), market participants are sceptical about a new set of clearing counterparty ratings offered by New York-based rating agency Moody’s Investors Service.

“[Assessing the creditworthiness of CCPs] is very complicated. You might be able to standardise the basics, but different banks look at different things when analysing a CCP or its services, so we still have quite a lot of questions,” says Ulrich Karl, London-based

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