Fitch to Issue Report: Housing Market Downturn & Impact on Municipal Debt Issuers.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 -- A 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. special report to be released in early February will outline the factors Fitch uses to identify municipal debt issuers in areas vulnerable to or currently experiencing a real estate market decline or price correction. The report represents an effort by Fitch to standardize stan·dard·ize v. 1. To cause to conform to a standard. 2. To evaluate by comparing with a standard. its analytical process when assessing housing market risk during a downturn, and to make this process transparent to municipal debt issuers. Since the beginning of this decade, growth of the housing market, as evidenced by rising single family home and condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. prices, bolstered the U.S. economy following a period of economic recession. The various indicators of this market surge, which signaled robust growth, have decelerated and reversed in many markets. Since it has been an important driver of economic growth, which infused cash into government coffers and boosted employment in markets related to real estate, Fitch believes that the recent activity in the housing market warrants additional consideration among the criteria incorporated into municipal debt ratings, particularly for issuers in specific geographic regions. The report will address how Fitch integrates risk related to a slowing real estate market into an issuers' overall financial and economic profile. While this report will outline a framework on how this risk will be accounted for in municipal government credit ratings, it is not anticipated that there will be widespread impact on ratings as a result. In most instances, an issuer's vulnerability to a slowing housing market is offset by factors that mitigate the risk, including state or local laws that have limited the growth of assessed valuation of the property tax base and ad valorem taxes Ad Valorem Tax A tax based on the assessed value of real estate or personal property. In other words ad valorem taxes can be property tax or even duty on imported items. Property ad valorem taxes are the major source of revenues for state and municipal governments. , as well as actions taken by government managers that temper the impact of a slowdown in the market. The report will expand further on several points, including: -- Analysis of housing market data to determine the extent of an issuer's vulnerability to the housing market slowdown; -- Identifying those metro areas This article is about the music production team. For the article about population centers, see metropolitan area. Metro Area are a Brooklyn-based dance music production team composed of Morgan Geist and Darshan Jesrani. most vulnerable to and now most affected by the slowdown; -- How an analysis of the overall financial and economic profile of the issuer will incorporate risk related to a slowing housing market. This will include an analysis of factors that provide a hedge against this risk. 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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