EEMEA Gains A Foothold In The Global Securitization Market ...

techniques is one of the key hurdles to overcome. While the substance of the law is ofcourse critical, the implementation of laws is just as important, and the untested nature ofcertain laws and the lack of precedent raise concerns about implementing laws that werenot specifically designed to deal with securitization. Several European countries haveadopted specific securitization laws, but in the EEMEA region, only South Africa haslegislation designed for securitization and the corresponding legal protections necessaryfor investors. Russia has passed a law on RMBS in 2003, but no securities have beenissued so far due to deficiencies of the bill and a lack of implementing regulations. Polandhas taken steps to amend its laws to facilitate securitization, though a completeframework for securitization is still under discussion. There is legislation in the pipelinein Russia, Kazakhstan, and Turkey aimed at creating a framework for domestic existingassetsecuritization.What Procedures And Information Are Crucial When Seeking AStandard & Poor's Rating?We require certain information regarding a proposed transaction and the participants in itin order to assess the feasibility of providing a rating. From a legal perspective, a true saleopinion, a tax opinion, a political risk insurance contract in certain jurisdictions, as well asinformation regarding the security/foreclosure process for an RMBS transaction are allrequired (other asset classes will require similar security information). Structural features,such as a currency exchange and/or interest rate hedging mechanisms and creditenhancement, are also crucial.Information about the pool of loans acting as collateral for the transaction is alsoimperative, as are details about the originator, such as underwriting criteria, servicingstandards, systems, and back-up servicer information. Consistent underwriting and poolperformance tracking is key and is something originators in emerging markets areunlikely to be doing if they are not considering pursuing a securitization. Therefore, evenbefore a transaction has been structured, the originator must pull together various parts ofits organization, including underwriting, servicing, information systems, and treasurydepartments, to prepare itself to produce these specialized reports. Furthermore, servicingprocedures may need to be tightened.Originators and arrangers considering a new securitization in the EEMEA region shouldcontact us early in the process to receive a fuller understanding of our ratingrequirements.APPENDIX I: KEY STANDARD & POOR'S CONTACTSFor EEMEA future flow transaction enquiriesDiane Audino, New York (1) 212-438-2388, diane_audino@standardandpoors.comGary Kochubka, New York (1) 212-438-2514, gary_kochubka@standardandpoors.comFor EEMEA existing-asset transaction enquiriesChris Such, London, (44) 20-7176-3529, chris_such@standardandpoors.comBrian Kane, London, (44) 20-7826-3530, brian_kane@standardandpoors.comAlain Carron, Paris (33) 1-4420-7337, alain_carron@standardandpoors.comFor all sovereign enquiriesKristel Richard, London (44) 20-7176-7107, kristel_richard@standardandpoors.comStandard & Poor’s Page 16 of 20