Fitch Refines ABCP Criteria To Reflect More Complex Programs.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of & LONDON -- As the asset-backed commercial paper (ABCP ABCP Asset-Backed Commercial Paper ABCP Associação Brasileira de Cimento Portland (Brazil) ABCP Associação Brasileira de Ciência Política ABCP American Board of Cardiovascular Perfusion ABCP Associate Business Continuity Planner ) markets around the globe continue to expand and evolve with new structures and assets, 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 refined its criteria to reflect the increased complexity of transactions seen in these markets. One of the latest developments in Fitch's ABCP criteria is the agency's use of VECTOR CP, a Monte Carlo simulation Monte Carlo Simulation A problem solving technique used to approximate the probability of certain outcomes by running multiple trial runs, called simulations, using random variables. model used to quantify the portfolio risk of an ABCP program. Fitch updated its global ABCP criteria report to incorporate the use of VECTOR CP. As detailed in this report, Fitch applies VECTOR CP to both multiseller and securities-backed ABCP programs and quantifies important portfolio risk factors such as correlation and asset distribution to quantify the appropriate level of programwide credit enhancement. Compared to traditional methods that determine the level of programwide credit enhancement, VECTOR CP provides a more precise and granular measure of asset portfolio risk. The report describes in detail other key analytical considerations related to ABCP, including the analysis related to collateral, structure, credit enhancement, liquidity facility, and legal issues. The role played by key agents and parties that support ABCP programs is also described in detail. 'Global Asset-Backed Commercial Paper Criteria' is available on the Fitch Ratings web site at www.fitchratings.com. 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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