Mixed industry reaction to Moody’s CCP ratings
Clearing members say narrow definition of default may limit ratings’ usefulness
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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