Examples of Issuer Rating in a sentence
If the "credit enhancement of mortgage collateral" is insufficient for the above-mentioned level of "stress resilience of mortgage collateral", the rating for the JHF MBS will not be lower than the Issuer Rating for JHF, but the width of notching up (the extent by which JHF MBS' rating is above JHF's Issuer Rating) will be smaller.
Specifically, JHF MBS' rating could exceed JHF's Issuer Rating by 3 notches for the AAA level "stress resilience of mortgage collateral" and by 2 notches for the AA to A level "stress resilience of mortgage collateral".
Distance from the government (e.g. Importance under the government's policy)(a) Sufficient collateral with credit enhancement(b) The Corporate Rehabilitation Law does not apply; no major limit on asset disposal2) Deterioration in stress resilience of mortgage collateralThere is risk that as cases of default by obligors increase, "credit enhancement of mortgage collateral" will be less adequate and the width of notching up from JHF's Issuer Rating will be smaller.
Nevertheless, because sufficient overcollateralization has been set, and the Corporate Rehabilitation Law, which would greatly limit JHF’s ability to dispose of assets, does not apply, the rating for the JHF MBS may be higher than the Issuer Rating for JHF itself.
Because JHF is the issuer of the JHF MBS, any downgrade of JHF’s Issuer Rating (currently AAA; Rating Outlook: Negative) prior to the time when the beneficial interests are exercised could result in a downgrade of the rating for the JHF MBS.