Although rating agency is secondary to the process of securitization but it plays a vital role. Explain.

Yes, this statement is correct since the securitization is based on the pools of assets rather than the originators, the assets must be assessed in terms of its credit quality and credit support available. Rating agency assesses the following: Strength of the Cash Flow.Mechanism to ensure timely payment of interest and principle repayment.Credit quality of obligors.Liquidity support.Strength of legal framework.