Fitch Seeks Comment on New Rating Scales

Fitch Ratings is seeking comment over the next 30 days on potential new rating scales and indicators for global structured finance that would complement its existing scale. "The additional indicators are designed to improve transparency for users of SF ratings and provide market participants with additional information regarding rated securities," said Ian Linnell, head of Fitch's EMEA [Europe, Middle East, and Africa] SF rating group. "Additionally, the proposals seek to address any perceived shortcomings of SF ratings." Among Fitch's proposals are a Loss Severity rating scale at the security level to accompany traditional ratings, and the assignment of an opinion grade for the underlying collateral alongside the transaction rating. The Collateral Quality Assessment "would draw on views already developed as part of the SF rating process, but is designed to isolate opinion on collateral from opinion on the rest of the transaction structure," Fitch said. The rating agency can be found on the Web at http://www.fitchratings.com.