Fitch Assigns Recovery Ratings to Financial Institutions.LONDON -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has today assigned Recovery Ratings ("RRs") to all securities issued by banks and non-bank financial institutions rated 'B+' or below. In total 34 RRs have been assigned. Recovery Ratings are Fitch's assessment of the likely level of recoveries for a specific security upon the default of an issuer. They range from 'RR1' (outstanding recovery prospects; typically 91% or greater) to 'RR6' (poor; typically 10% or less). Securities are rated higher, lower or the same as an Issuer's Default Rating ("IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ") depending upon their RR. The higher the RR, the greater the potential uplift to the rating of the security (up to a maximum of three notches for 'RR1' rated instruments) and conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , the lower the RR, the greater the potential reduction (up to a maximum of three notches below the IDR for 'RR6' rated instruments). Securities with a RR of RR4 (average; typically 31-50%) are rated the same as the IDR. Note that while a high RR will result in the potential notching-up of a security, in practice, notching notching Radiology Small grooves on the anterior aspect of ribs seen on a plain CXR of children with post-ductal–ductus arteriosus coarctation of the aorta, due to 'tracks' from the pressure of collateral vessels on the ribs may be limited by a system of soft country caps Fitch has put in place to reflect the creditor friendliness of a jurisdiction plus enforceability of security (see 'Country Specific Treatment of Recovery Ratings', dated 12 December 2005, available on www.fitchratings.com). For further information on IDRs, see the press release 'Fitch Assigns Issuer Default Ratings to Financial Institutions', dated 23 February 2005. RRs are publicly assigned to entities rated below 'B+' only and are derived from a customised analysis of the break-up value break-up value n (COMM) → valor m de liquidación break-up value n (Comm) → valeur f de liquidation of an individual issuer and their liability structure. (For further details, please see Fitch's criteria reports 'The Role of Recovery Analysis in Ratings', dated 14 February, 2005, 'Recovery Ratings: Exposing the Components of Credit Risk', dated 26 July 2005 and 'Recovery Ratings: Developing an Effective Methodology of Banks', dated 27 September 2005, available on www.fitchratings.com.) The process of establishing ratings for the obligations of issuers rated between 'AAA' to 'BB-(BB minus)' will refer, for the most part, to aggregate recoveries on the defaulted bond market as a whole and not to issuer-specific analysis since assumptions on asset and liability structure at default for these entities would be largely arbitrary. For a full list of RRs assigned to securities issued by bank and non-bank financial institutions rated 'B+' or below, see the file 'Bank and NBFI NBFI Non-Bank Financial Institution NBFI Non-Bank Financial Intermediary Recovery Ratings' available on www.fitchratings.com. Please click on 'Financial Institutions' followed by 'Banks' and then 'Special Reports'. Fitch will hold a teleconference on the assignment of IDRs and RRs to banks and non-bank financial institutions on 1 March at 15.00 GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 . Details will be provided in due course. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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