06 Jul 2015 4:15 PM GMT/UTC

Fitch Updates Global Structured Finance Rating Criteria; No Rating Impact

OREANDA-NEWS.  Fitch Ratings has updated its global criteria for rating structured finance (SF) transactions. The changes to the report will not have any rating impact on existing SF transactions.

Updates to the criteria are minor and include clarifications to the section on special purpose vehicles in SF, as well as other minor text revisions throughout the report.

The criteria describe Fitch's overarching approach to analysing SF transactions and identify the key considerations when assigning an SF rating. These include asset isolation and legal structure, asset quality, credit enhancement, financial structure and originator and servicer quality. The report also describes the agency's expectations regarding bankruptcy remote special purpose vehicles that are used in SF transactions.

The principles discussed in the criteria are applicable to all asset classes including residential and commercial mortgage-backed securities, asset-backed securities and structured credit transactions. The criteria provide an overarching framework applicable to all SF transactions which is complemented by asset class-specific and cross-sector rating criteria.