TRUE FALSE In applying ratings to CMBS securitizations rati

(TRUE / FALSE) In applying ratings to CMBS securitizations, rating agencies take into account the quality and competence of the servicers.

Solution

True,

In applying for Corporate Mortagage Backed Securities (CMBS securitizations) , the rating agencies shalll take into account the quality and competence of the services to have a reasonable assurance that the servicer is capable of repaying the amount of loans taken. The ratings shall be made on these basis.