The update provides:

• Guidance on what constitutes a Key Rating Assumption;
   
• Guidance on Scope’s local- and foreign-currency structured finance instrument ratings;
   
• Clarifications regarding the recovery analysis;
   
• Clarifications regarding the scope of the liquidity risk analysis;
   
• Clarifications regarding the foreign exchange risk analysis;
   
• Clarifications regarding the potential impact of transaction-governance related ESG factors;
   
• Clarifications regarding the information used during monitoring;
   
• Clarifications regarding the inputs to Scope’s cash-flow model;
   
• Clarifications regarding the analysis of historical credit performance data for transactions that securitise highly granular homogeneous portfolios;
   
• A disclosure of Scope’s interest rate stress framework;
   
• A reframing regarding the framework for fundamental recovery rate analysis; and
   
• Clarifications regarding analytical considerations for guarantee contracts.

Download the updated methodology here or on www.scoperatings.com.