The outlook for Canadian asset-backed commercial paper programs in 2012 is stable, says Moody’s Investors Service in a new report.
The rating agency says that the credit quality of the assets backing the programs is strong and the rating outlook for the banks that supply their liquidity support continues to be stable.
“The credit quality of the assets in the ABCP programs remains strong with few or no losses relative to credit enhancement,” says Lisa Singman, Moody’s vice president and senior credit officer. “Credit trends of the existing assets will remain positive and will continue to be so in 2012.”
Bank sponsors, who are also the sole liquidity support providers of the Canadian ABCP conduits, have stable ratings, Moody’s notes, adding that this also supports the stable outlook for ABCP credit quality.
Moody’s expects the amount of Canadian ABCP outstanding to remain at current levels in 2012. As of June, it was rating $24.27 billion Canadian ABCP.