Moody's has explained why it gave the second Italian securitisation of late social security payments the green light and set the tone for what will be a difficult transaction to price.

As first reported in Financial News, the second tranche of INPS is on track for delivery by the end of the year. It has to be, because the Italian government has budgeted for that outcome. Notes issued by Società di Cartolarizzazione dei Crediti INPS (SCCI) will still be rated triple A, despite a shortfall in collections during the summer.