Fitch Updates Global Surveillance Criteria for Structured Finance CDOs; No Rating Impact
The criteria describe 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 an application of a rating cap to transactions with collateral concentrated in a single country, single sector, and single vintage group. In absence of mitigating factors, Fitch will limit the ratings to a maximum of 'BBBsf' in such transactions. The cap will not apply to senior notes that are covered in full or in large proportion of the outstanding balance with cash and eligible investments available in the principal collection account.
Updates to the criteria also include a change to the title of the report to surveillance criteria, which reflects the agency's expectations of no new issuance in the sector in thenear term.
The criteria report 'Global Surveillance Criteria for Structured Finance CDOs, is available on the Fitch Ratings website at www.fitchratings.com.
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