Moody’s Investors Service says that it doesn’t rate any asset-backed commercial paper conduits with market disruption clauses in their liquidity backstop agreements, and it believes the programs it does rate are secure.

The ABCP programs that Moody’s rates that have liquidity facilities, including the one program it rates in Canada, have committed liquidity facilities, the rating agency says.

“We believe that in isolated cases, there have been some draws on liquidity to pay maturing ABCP notes. In those cases, liquidity providers made funds available in a timely fashion,” it reports.

Moody’s says that it monitors the credit quality of the ABCP programs that it rates, and the quality is generally high and more than sufficient to meet the requirement under liquidity agreements.

The rating agency says that “general market disruption” liquidity backstops exist only in the Canadian market. “We do not expect any similar circumstances to occur in other markets, nor with the ABCP program that we rate in Canada.”