The criteria establish S&P Global Ratings'framework for rating securitizations of nonperforming loans (NPLs). The criteria apply to all new and existing ratings on securitizations supported by portfolios that initially consist primarily or entirely of nonperforming assets. These assets may be at various stages in their recovery process. The criteria broadly apply to nonperforming assets, but in the text we focus on NPLs. Other asset types include nonperforming leases. Our methodology consists of two sections. Section 1 outlines the NPL securitizations ratings framework. Section 2 covers analytical considerations for specific European NPL transactions. The framework for assessing the creditworthiness of NPL securitizations is based on the five principles of our structured finance ratings (see"Related criteria"): Credit quality of the
