OREANDA-NEWS. Fitch Ratings has updated its structured finance collateralized debt obligation (SF CDO) rating criteria. The report replaces the existing report titled 'Global Rating Criteria for Structured Finance CDOs', dated July 13, 2015.

The criteria describes Fitch's approach to monitoring and analyzing outstanding SF CDO transactions and identify the key rating drivers that determine appropriate ratings actions. The rating analysis in this report is substantially the same as that in the previously published report, with the exception of the removal of asset-specific recovery estimates from Fitch's surveillance analysis of SF CDOs. The potential impact of this removal is limited to 24 structured finance transactions, and ranges from one to three notches. The updated approach will be applied during the respective surveillance reviews and expected to be completed by Jan. 1, 2017.