OREANDA-NEWS. Fitch Ratings has updated its special report describing the representations, warranties and enforcement mechanisms (RW&Es) the agency typically sees in structured finance (SF) transactions.

The report has been updated to include a revised appendix for EMEA leveraged finance collateralized loan obligations (CLOs). The appendix has been revised to clarify that the offering documents for EMEA leveraged finance CLOs do not typically include RW&Es that are available to investors and that relate to the asset pool underlying the CLO. Therefore, Fitch credit reports for EMEA leveraged finance CLOs will not typically include descriptions of RW&Es.

The determination that it is not typical for the offering documents for EMEA leveraged finance CLOs to include RW&Es that are available to investors and that relate to the asset pool underlying the CLO was derived by reviewing the documentation of recent transactions that Fitch views as representative of the asset class, thus defining what the agency regards as 'similar securities,' which will be used as the basis for comparisons in Fitch transaction- level reports.

The SEC's adoption of Rule 17g-7 requires Nationally Recognized Statistical Rating Organizations to include in credit reports a description of the RW&Es available to investors that are disclosed in the transaction's offering documents and that relate to the asset pool underlying the transaction' as well as a comparison of these RW&Es to 'similar securities.'

The definitions of 'typical' RW&Es are expected to remain somewhat fluid as industry standards in many areas of structured finance continue to evolve. Periodically, Fitch intends to update this report and, in particular, the various asset-level appendices, to reflect the developments in standards.