RFC issued on gas prepay approach

Pic© Nuno Mor�o

Category: ABS

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S&P has requested comments on its methodology for rating US physical commodity prepayment ABS transactions. Such bonds are backed by the payment obligations of municipalities for the delivery of gas and counterparties that hedge gas price fluctuations. Contractual guarantees cover the performance risk of the gas supplier, which is paid upfront for the delivery of gas to the municipalities over time.

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