The Federal Reserve's Term Asset-Backed Securities Loan Facility, or Talf, is causing issuers to "shop" for credit ratings or seek the highest grades available, according to Moody's Investors Service Inc.

The need to have a AAA rating to be eligible "for government programs raises the specter of rating shopping," Andrew Kimball, head of the global structured finance business at Moody's, said during an investor presentation Thursday.

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