Printer Friendly

Fitch Ratings Revises the Outlook of 17 CLN Transactions to Negative.

London/Milan: Fitch Ratings has revised the Outlooks of 17 credit-linked notes (CLNs) to Negative from Stable.

A full list of affected notes is available at www.fitchratings.com or by clicking the link above.

KEY RATING DRIVERS

Italy's Outlook to Negative

The Outlook change for seven CLN transactions follows a recent similar rating action on the Italian sovereign, which is one of the risk-presenting entities in these transactions and the weakest link. The Negative Outlooks on the CLNs are in line with the Outlook on the weakest link.

On 31 August 2018, Fitch revised Italy's Outlook to Negative from Stable and affirmed its Long-Term Foreign- and Local- Currency Issuer Default Ratings (IDRs) at 'BBB.

Mediobanca's Outlook to Negative

The Outlook change for the other 10 CLN transactions follows a recent similar rating action on Mediobanca, which is one of the risk-presenting entities in these transactions and the weakest link. The Negative Outlooks on the CLNs are in line with the Outlook on the weakest link.

On 5 September 2018, Fitch revised Mediobanca's Outlook to Negative from Stable and affirmed its Long-Term IDR at 'BBB'.

RATING SENSITIVITIES

Fitch monitors the performance of the underlying risk-presenting entities and adjusts the rating of each CLN transaction accordingly. To the extent the Italian sovereign or Mediobanca is the weakest link, a downgrade event would determine a downgrade of the CLN.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

DATA ADEQUACY

Fitch has not conducted any checks on the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Overall, Fitch's assessment of the information relied upon for the agency's rating analysis, according to its applicable rating methodologies, indicates that it is adequately reliable.

SOURCES OF INFORMATION

The information below was used in the analysis:

- Italy's and Mediobanca's IDRs.

COPYRIGHT 2018 Plus Media Solutions
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2018 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Dec 19, 2018
Words:351
Previous Article:Fitch Revises Outlook on 57 Italian SF Transactions to Negative on Sovereign Rating Action.
Next Article:Fitch Rtgs: Political Tensions Dampen Guatemala Growth, Fiscal Revenues.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |