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NAIC APPROVES FITCH RECOVERY INDICATOR FOR BANKRUPT SECURITIES -- FITCH FINANCIAL WIRE --

 NAIC APPROVES FITCH RECOVERY INDICATOR FOR BANKRUPT SECURITIES
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Sept. 22 /PRNewswire/ -- Fitch Investors Service, Inc. has been approved by the Valuation of Securities (VOS) Task Force of the National Association of Insurance Commissioners (NAIC) as an independent source of recovery analysis for securities in or near default (rated NAIC 6). The approval is in accordance with language changes adopted today to the Purposes and Procedures Manual of the Securities Valuation Office (SVO) of the NAIC.
 Fitch's recovery analysis, known as the Fitch Recovery Indicator (FRI), will now be considered by the SVO when insurance companies must value their distressed portfolios of private placements and illiquid public securities for reporting purposes.
 Previously, the rules provided that, in the absence of a market price, recovery analysis would be performed by the SVO. Under the new rules, the Securities Valuation Office of the NAIC is now authorized to consider valuations determined by an approved, independent source when an accurate market price is unavailable. These independent valuations can be submitted by insurance companies for statutory reporting purposes.
 Specifically, the NAIC's new ruling declares that "if a private placement requires an estimated market price for valuation purposes, such value will be analytically determined by the SVO staff, or the SVO, at its discretion, may accept a value determined by an independent organization approved by the SVO." This rule will also apply to illiquid public securities that have no reliable quotation.
 -0- 9/22/92
 /CONTACT: Joan B. Greenberg or David Nixon of Fitch, 212-908-0500/ CO: Fitch Investors Service, Inc.; National Association of
 Insurance Commissioners ST: New York IN: FIN SU: RTG


SH -- NY058 -- 2192 09/22/92 12:28 EDT
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Publication:PR Newswire
Date:Sep 22, 1992
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