An international corporation comprised of Fitch Solutions, Algorithmics and FitchTraining, generally known primarily as a rating agency. Thus, the main task of Fitch Ratings is to provide the economic market with data on the creditworthiness of banks, countries, organizations around the world in 150 countries.
An international credit rating agency based in New York and London. The ratings assigned by the company are used as a guide by investors against which investments are selected that are most likely to generate income. The rating is based on factors such as how small a change in the economy needs to be for it to affect financial condition the issuer of bonds, or what debt obligations are serviced by the company.
Fitch rating agency is an agency that is one of the Big Three along with Moody's and Standard & Poor's. It has two headquarters - in New York and London, as well as 51 representative offices. The staff has 1,500 employees. Ratings were assigned to 3,100 financial institutions, 1,600 banks, 1,400 insurance companies, 1,200 corporations, 89 states and 45,000 municipalities. The company has existed since 1912 as a publishing house, and since 1924 as a rating agency.
The Fitch rating agency is an international rating agency dedicated to providing the world's credit markets with independent and forward-looking credit ratings, insights and data. Fitch Ratings staff, based in 50 offices around the world, has global and local market expertise and analyzes the capital markets of more than 150 countries. Investors, issuers and bankers around the world note the reliability, transparency and timeliness of Fitch Ratings' analytical products.
The company was founded in 1987 and was called CRR. Acquired by the Fitch Group in 2002, FitchTraining specializes in training and is based in London. The main activity of FitchTraining is training programs for specialists in the field of fixed income instruments, management credit risks and customer relationship management/originator functions. Fitch Training has a global presence with training specialists based in the UK, Continental Europe, the US and Asia.
The main objective is to provide the global credit markets with independent and forward-looking credit assessments, analytical studies and data.
Fitch is a group that, in addition to Fitch Ratings, includes:
- Fitch Solutions-this is a division of the Fitch Group focused on developing fixed income products and services and providing the market with a wide range of data, analytical tools and related services. Fitch Solutions is the distribution channel for materials produced by Fitch Ratings. Fitch Solutions offers research, risk and performance analytics, data analysis for structured finance portfolio management, as well as pricing and valuation services, advice and training.
- algorithms is a global leader in solutions for corporate risk management.
- Fitch Training is department that specializes in training on creditworthiness and corporate finance.
The Fitch Group is majority owned by Fimalac S.A. (headquartered in Paris).
Fitch Ratings was founded in New York by John Knowles Fitch on December 24, 1913 as the Fitch Publishing Company.
In 1997, Fitch and IBCA Limited (headquartered in London) merged, and the holding company Fimalac S.A. became the owner of Fitch.
In April 2000, Fitch acquired Duff & Phelps Credit Rating Co. (headquartered in Chicago). Later that year, Fitch bought Thomson BankWatch.
In October 2006, Fitch Ratings established Derivative Fitch, the first dedicated ratings agency dedicated to credit derivatives ratings, research and evaluations to meet the needs of this market.
- AAA. The highest level of creditworthiness
- AA. Very high level of creditworthiness
- A. High level of creditworthiness
- BBB. Sufficient level of creditworthiness
- BB. The level of creditworthiness is below sufficient
-B. Significantly inadequate creditworthiness
- CCC. Possible default
- CC. High probability of default
-C. Default is inevitable
-D. Default
Fitch Ratings was founded by John Knowles Fitch on December 24, 1913 as the Fitch Publishing Company. The company was located in the heart of New York's financial district and started out by publishing financial statistics. Her clients included the New York Stock Exchange. Fitch Publishing Company soon became a recognized leader in providing important statistics to the investment community through its publications such as the Fitch Bond Guide and the Fitch Stock and Bond Guide.
In 1924, to meet the growing demand for independent research on financial instruments Fitch Publishing Company introduced the now widely known rating scale from "AAA" to "D". The rating scale, coupled with in-depth analysis by the company's investment experts, quickly gained recognition and became the benchmark for the financial community in making fixed income investment decisions.
Fitch Ratings was one of three agencies that were the first to receive official statistical rating agency status from the US Securities and Exchange Commission in 1975.
In 1989, a new management team came to Fitch Rating, capital was increased, and the agency began to show impressive growth. In the 1990s, Fitch Ratings saw growth across the board, including new areas such as structured finance, providing investors with proprietary insights, clear explanations of complex instruments/issuers, and some of the most in-depth research of any rating agency.
In 1997, Fitch Ratings merged with London-headquartered IBCA Limited, significantly strengthening Fitch Ratings' global presence and broadening its analytical coverage of banks, financial institutions and sovereigns. Following the merger with IBCA Limited, the agency was owned by the holding company Fimalac S.A., which acquired IBCA Limited in 1992. This merger was the first step in the agency's quest to satisfy investors' need for an alternative, full-service global rating agency.
The next step in the creation of an international competitive agency was the acquisition in April 2000 of Duff & Phelps Credit Rating Co. headquartered in Chicago. Later that year, the ratings company Thomson BankWatch was acquired. These acquisitions have enabled the agency to provide broader analytical coverage of corporate issuers, financial institutions, insurance companies and the structured finance sector. In addition, the agency was able to significantly increase the number of its offices and affiliates around the world.
Today, Fitch Ratings is an international ratings agency not dedicated to providing the world's credit markets with independent and forward-looking credit ratings, analysis and data. Following growth and acquisitions, Fitch Ratings now employs over 2,100 people in 50 branches and subsidiaries around the world. Fitch Ratings has two main offices in London and New York.
In January 2008, the Fitch Group announced the development of Fitch Solutions, a division focused on providing data, analytical tools and related services. The purpose of the development of this unit is to strengthen the independence of Fitch Ratings' credit ratings and research research and create a structure that will be fully focused on the development of products and services in the field of fixed income instruments. This division provides an even deeper separation between the analytical and rating activities. In addition, it has created a comprehensive and detailed platform for the dissemination of Fitch Ratings materials.
Fitch Training is part of Fitch Solutions and specializes in training on creditworthiness and corporate finance for professionals in fixed income instruments, credit risk management and customer relationship management/originator functions. Fitch Training provides services to a variety of financial institutions, including investment and commercial banks and asset managers, as well as regulators. Fitch Training has a global footprint with training specialists based in the UK, Continental Europe, the US and Asia.
Fitch Agency terminated relations with Moldova.
Fitch Ratings has two headquarters - in New York and London - and 50 offices around the world. Fitch Ratings is part of the Fitch Group, which is jointly owned by Fimalac, S.A. and Hearst Corporation.
Fitch has been working with a wide range of issuers from Russia and the CIS for over 15 years and assigns international and national credit ratings to banks, non-banking financial institutions, insurance companies, corporate sector issuers, regional and local authorities, and sovereign governments. Fitch also rates fixed income debt issues and structured finance deals.
Fitch offers various types of ratings. The most common of these are credit ratings. In addition, Fitch publishes other ratings, estimates and opinions on the relative financial or operating position of issuers. For example, Fitch assigns special ratings to servicers (service companies for residential and commercial mortgage transactions), as well as asset management companies and managed funds. To understand the risks in each case, you should look at the definitions of ratings (assessments) on a specific scale.
Fitch's credit ratings are an opinion on an issuer's relative ability to meet its financial obligations, such as paying interest, paying dividends on preferred shares, repaying principal, settling claims and meeting counterparty obligations. Credit ratings are used by investors to assess the return on their investment in accordance with the terms on which the investment was made. Fitch's credit ratings cover corporate, sovereign (including interstate and subnational entities), financial, banking and insurance issuers, municipal and other public finance entities, as well as securities and other obligations issued by such issuers, and, finally, structured financing secured by receivables or other financial assets.
Over time, the terms "investment grade" and "speculative grade" emerged, which are shorthand for rating levels from "BBB" to "AAA" (investment grade) and from "D" to "BB" (speculative grade). The terms "investment grade" and "speculative grade" are used by market players and do not constitute a recommendation or endorsement for the use of any security for investment purposes. "Investment grade" ratings reflect relatively low to moderate credit risk, while "speculative grade" ratings indicate higher levels of credit risk or that a default has already occurred.
Fitch Credit Ratings do not directly measure any risk other than credit risk. In particular, the ratings do not assess the risks of a decrease in the market value of the rated security due to changes in interest rates, liquidity or other market factors. However, with regard to payment obligations on rated obligations, market risks can be considered to the extent that this affects the ability of the issuer to make the necessary payments. The ratings do not reflect market risk in terms of its effect on the size or terms of payment obligations (eg in the case of index-linked bonds).
In the default components of the ratings of specific obligations or instruments, the agency, as a rule, takes into account the probability of non-payments or defaults based on the terms of the documentation of this instrument. In some cases, taking into account special factors, Fitch may assign a rating at a higher or lower level than suggested by the notes' documentation. In such cases, the agency clearly indicates the reasons for such an opinion in the relevant rating message.
Fitch also assigns Individual and Support Ratings to banks, assessing respectively the likelihood of them experiencing significant financial difficulties that will require support, and the likelihood of receiving external support in such a situation. In addition, the agency assigns ratings to insurance companies that reflect their financial strength.
Ratings are relative measures of risk, and assigning ratings to issuers and liabilities in the same category may not fully reflect small differences in credit risk. The ratings also take into account limited and specific aspects of risk, as described below, and do not reflect other possible risks on the issuers' financial or operating positions or liabilities. In each case, in order to understand the scale of risks by rating, one should look at the definition of the corresponding rating scale.
The ratings are based on information obtained directly from issuers, borrowers, underwriters, their experts and other sources that Fitch considers reliable. Fitch does not audit or verify the correctness or accuracy of such information, and undertakes no obligation to audit or verify the information, or to perform any other verification of the accuracy or completeness of the information. If the information provided is found to be false or otherwise misleading, the rating assigned on the basis of such information may not be an adequate measure of creditworthiness and Fitch shall not be liable for the resulting risks. The assignment of a rating to any issuer or security should not be taken as a guarantee of the accuracy, completeness or timeliness of the information on which such an opinion is based, or as a guarantee of results from the use of such information.
The ratings are not a recommendation to "buy", "sell" or "hold" any security. The ratings do not constitute a commentary on the adequacy of the market price, the suitability of a particular security for particular investors, or the application of tax exemptions or tax treatment to any payments on any securities. The ratings themselves are not factual information and therefore cannot be characterized as "accurate" or "inaccurate".
Fitch Credit Ratings do not directly measure any risk other than credit risk. In particular, the ratings do not assess the risks of market value deterioration due to changes in interest rates, liquidity or other market factors.
Fitch Ratings has no fiduciary relationship with any issuers, clients or others. Nothing is intended to create such a fiduciary relationship and should not be construed as creating a fiduciary relationship between Fitch Ratings and any issuer or between Fitch Ratings or any rating user. Fitch Ratings does not provide any parties with any financial or legal advice, does not perform audits, and does not provide accounting, valuation or actuarial services. The rating should not be considered equivalent to such recommendations or services.
Ratings may be amended, clarified, placed under Rating Watch, and withdrawn as a result of changes, additions, clarifications, unavailability or inadequacy of information, or for any other reason that Fitch deems basis for such a rating action.
The assignment of a Fitch rating does not constitute the agency's authorization to use its name as a reference to expert opinion in connection with any registration documents, prospectus or other documentation prepared under any securities laws.
International credit ratings refer to liabilities in foreign or national currency. In both cases, the ability to fulfill such obligations is assessed on an international rating scale. Ratings on the international scale, both in foreign and in national currency, are comparable on a global scale.
Ratings on the international scale in national currency are an assessment of the probability of payments in the currency of the country in which the issuer is based, and therefore do not take into account the risk of the inability to convert the national currency into a foreign currency or transfer funds to other countries (that is, it does not take into account transfer risk and risk conversions).
Foreign currency ratings, among other things, evaluate the issuer or bonds for transfer risk and conversion risk. Typically, for each country, this risk is reflected in the Country Ceiling, which limits the foreign currency ratings of most, though not all, issuers in the country.
If the rating in the relevant message is not directly referred to as a national or foreign currency rating, then it is assumed that this is a foreign currency rating (that is, a rating that extends to obligations in all convertible currencies).
As of February 2009, a recalibration process is underway to review rating definitions for U.S. government issuers. For more information on this, see the Rating Methodology Notes of October 7, 2008 ("Fitch Defers Final Determination on U.S. Municipal Ratings Recalibration") and July 31, 2008. ("Exposure Draft: Reassessment of Municipal Ratings Framework").
The Recovery Rating Scale is based on the expected relative recovery rates of liabilities when making payments in the event of default, insolvency, bankruptcy, or liquidation of the borrower or related collateral. Although the Recovery Rating indicates an approximate percentage range of recoveries at default (relative level), this scale is, in fact, an ordinal scale and is not intended to give an accurate assessment of a certain level of recovery of funds.
In some countries, Fitch assigns National Scale Ratings, or National Ratings, which are a credit rating of an issuer with the lowest credit risk in a country. A rating reflecting the lowest risk is generally, though not always, assigned to all financial obligations issued or guaranteed by the government. National rankings are not intended to be compared internationally and have a special letter designation indicating the country. In addition, national rating levels may not be fully comparable over time, given the shifting calibration of the entire scale towards issuers with the lowest credit risk in a given country (internationally, the creditworthiness of such issuers relative to other issuers can change significantly over time).
In the case of a rating marked "expected" (such a rating may also be indicated by the phrase "expected to be rated" or marked in brackets "(EXP)"), this means that a full rating has been assigned based on the agency's expectations regarding the final documentation of obligations . As a rule, such a rating is based on the analysis of the most recent preliminary documentation from the issuer. The expected ratings do not have any other differences. While Fitch typically transforms Pending Ratings into Final Ratings within a short period of time, depending on when the issuer chooses to close the deal, Pending Ratings may be upgraded, downgraded or placed under Rating Watch in the period between the assignment of the Expected Rating and the Final Rating, as well as as well as the final rankings.
Fitch Ratings assigns a limited number of private (non-public) ratings, for example, for companies that do not have public debt obligations, and also when the rating is necessary for the issuer's internal purposes or for regulatory purposes. As a rule, such a rating is reported directly to the rated issuer, who is responsible for ensuring that all parties to whom information about a non-public rating is reported receive information about any changes in this rating in a timely manner.
For the assignment of private ratings, the same analysis and rating committee is carried out, and then the ratings are monitored as in the case of published ratings, unless it is indicated that the rating is a point-in-time assessment.
Ratings assigned to corporate or government securities programs (eg, medium-term bond programs) apply only to standard issues within the respective program. These ratings should not automatically apply to all releases within the program.
Interest payment ratings are assigned to interest payments on debt obligations. These ratings do not take into account the possibility that a security holder may not receive some or all of their investment due to a voluntary or involuntary payment of principal.
Country Ceiling ratings are internationally comparable and reflect Fitch's view of the risk of imposing capital controls and foreign exchange controls by government authorities that would preclude or materially impede the ability of the private sector to convert local currency into foreign currency, as well as the ability to transfer funds to non-resident creditors, there will cause transfer risk and conversion risk. Given the close relationship between sovereign credit risk, transfer risk and currency convertibility risk, if the country ceiling is higher than the sovereign rating, then issuer ratings assigned at the country ceiling level may have higher volatility.
In certain situations, unrated issuers may request a credit assessment from Fitch. A credit score indicates what an issuer's likely rating would be if it requested a rating. The credit assessment is carried out by members of the same analytical group that would assign such a rating. When conducting a credit assessment, all materials that the issuer can provide are taken into account.
Among the Fitch Ratings services is a rating service, which is provided under certain circumstances to issuers, both already rated and not. An opinion formed as part of the rating service indicates to the issuer or its agent what level of rating such issuer or its obligations could receive based on hypothetical assumptions provided by the issuer. Such assumptions may include options for reorganization of the capital structure or the impact of any acquisitions or disposals of assets. A rating service is an opinion on the level of a rating expressed by an analytical group working with the respective issuer. Such opinion (including a detailed list of assumptions and limitations on such assessment) is communicated to the issuer itself, its agents or the issuer's majority owners/owners' agents.
An "*" in a rating level designation (for example, "BBB+*") or a mark (cat) means that this is a conditional opinion. Credit opinions are generally not intended for publication and are used in other ratings. The conditional nature is explained in the relevant notes to the creditworthiness opinion. The credit opinion is more of a point-in-time assessment rather than an assessment that is continuously monitored. A credit opinion may be based on a lower level of information or may indicate an indicative rating level subject to further analysis or certain events. A credit opinion may be a substantially complete analysis from which one or more (disclosed) analytical elements have been excluded, resulting in such an opinion not being a complete rating opinion. In all cases, the "*" sign indicates that the credit opinion is not fully comparable in all respects with published ratings of the same level.
Fitch Solutions, a sister company to Fitch Ratings, also provides opinions for risk management professionals. These opinions include market-implied ratings and scores for US financial institutions. Such opinions are formed by Fitch Solutions specialists. The scales used to express the opinion of Fitch Ratings' non-rating affiliates are not interchangeable with other scales used for Fitch Ratings' ratings or assessments, nor are they equivalent to such other scales.
- rating confirmation upon request. Consideration of the rating for changes in conditions. Such a review may be carried out in connection with an external request or due to any changes. The rating level is left unchanged.
- maturity date. The issue has matured and has been de-rated.
- full redemption of the issue. The tranche has matured, regardless of whether it was amortized according to the schedule or was repaid ahead of schedule. Since the tranche has been redeemed, it is no longer rated.
- publication. The initial public announcement of the rating on the agency's website, although this is not necessarily the first rating assigned. This rating action takes place if a rating is published that was previously non-public.
- placement in the Rating Watch list. The issue or issuer's ratings are placed under Rating Watch.
- revision of the credit quality improvement mechanism. The credit enhancement mechanism for the existing security has been changed.
- rating of the investment process. Fitch assigns investment process ratings to provide investors with an independent and professional assessment of the performance of asset managers in relation to a particular investment process. These ratings are based on information obtained from asset management companies and other public sources that Fitch considers reliable. The review conducted to assign a rating includes a review, but not an audit, of a company in the following four categories:
Ratings are assigned on a scale from "IP1" to "IP5", where "IP1" is the highest rating. Ratings may be supplemented with a "+" or "-" sign to indicate relative position within the main rating categories. Such signs do not supplement the ratings of the "IP1" and "IP5" levels. Fitch may upgrade, downgrade or withdraw an investment process rating or place such rating on Rating Watch at any time based on information obtained from management monitoring and other reliable sources.
Long history of activity, including extensive experience in the relevant investment process.
Management and investment professionals with exceptional experience and motivation, very low or no turnover.
Modern organizational structure and segregation of duties among investment professionals.
Highly stable decision-making process with a high degree confidence and experience.
A highly formalized, transparent and clear investment strategy that is consistently implemented and has strong input parameters.
Fully integrated and flexible IT systems that provide the highest level of support to investment professionals in areas such as portfolio monitoring, decision making, preparation and execution of transactions, and administrative work.
Highly developed organization and procedures for monitoring and controlling investment risks.
Quite a long history of activity, including significant experience in the relevant investment process.
Management and investment specialists with a lot of experience and motivation, low staff turnover.
Very good organizational structure and segregation of duties among investment professionals.
Largely stable decision making process with a high degree of confidence and experience.
A highly formalized, transparent and clear investment strategy that is consistently implemented and has strong input parameters.
Well-integrated and flexible IT systems that provide a very good level of support to investment professionals in areas such as portfolio monitoring, decision making, preparation and execution of transactions, administrative work.
Very well developed organizations and procedures for monitoring and controlling investment risks.
Significant operating history, including acceptable experience in the relevant investment process.
Management and investment specialists with experience and motivation, acceptable staff turnover.
Good organizational structure and segregation of duties among investment professionals.
Stable decision-making process with a certain degree of confidence and experience.
A formalized, transparent and clear investment strategy that is consistently implemented and has good input parameters.
Integrated and flexible IT systems that provide a good level of support to investment professionals in areas such as portfolio monitoring, decision making, preparation and execution of transactions, administrative work.
Well-developed organization and procedures for monitoring and controlling investment risks.
An investment process with this rating has acceptable investment management, with some caveats that relate to concerns about one or more rating factors. Such investment processes are characterized by most of the following criteria:
Sufficient operating history, including moderate experience in the relevant investment process.
Management and investment professionals with moderate experience, some turnover.
Acceptable organizational structure and segregation of duties among investment professionals.
Pretty stable decision making process with some degree of certainty.
The basic level of formalization of the investment strategy.
An acceptable IT environment that provides minimum level support of investment specialists in such areas as portfolio monitoring, decision making, preparation and execution of transactions, administrative work.
The basic level of organization and procedures for monitoring and controlling investment risks.
An investment process with such a rating does not meet even the minimum industry standards. Fitch may raise concerns about several of the following: Very little history and accumulated statistics, Little experience, High employee turnover, Lack of resources, Inadequate IT and operating systems, Inconsistent decision-making, Inadequate investment discipline, procedures control and transparency.
Management Company Ratings and Investment Process Ratings are not comparable due to their different scope and purpose. These ratings are meant to provide different ratings. Management company ratings aim to assess the organizational and operational characteristics of the company as a whole, while investment process ratings are based on a sub-group analysis and assess the quality of a particular investment process. In other words, management company ratings are not an average of investment process ratings in these companies and should not be considered as such.
Below are examples of the evaluation of the performance of the Fitch rating agency in the CIS countries and abroad.
Fitch experts point to the weakness of the external financing position and the limited ability of the state to raise foreign currency loans to refinance payments on external debt in 2014-2015. "International reserves are likely to continue to fall from current low levels, increasing the risk of losing confidence in the hryvnia," the agency stressed. In addition, Fitch forecasts zero GDP growth in Ukraine in 2013 and growth of 1.5% in 2014. At the same time, if Ukraine signs an association agreement with the EU in November 2013, this may increase the degree of confidence and lead to an increase in investment.
Nervous environment due to the threat of US default affected analysts. Yesterday, the Fitch rating agency announced a possible downgrade of the highest US rating. This decision by Fitch could have serious implications, including for Russia. The strengthening of the dollar, which could be triggered by the revision of the benchmark rating, will cause a fall in oil prices and exacerbate the structural problems of the Russian economy.
Yesterday, Fitch Ratings put the current US credit rating - "AAA" on review and changed the outlook on it to "negative". "Despite the fact that Fitch Ratings remains confident that the US borrowing limit will be raised soon, political confrontation and reduced flexibility in financing issues are fueling default risks," the agency's analysts explain.
Fitch announced a possible downgrade of the US rating, reflecting the existing risk of the country's default if the level of public debt is not raised in time. At the same time, the agency reserved the right to make a decision to change the US rating before the end of the first quarter of 2014.
Fitch's actions are quite a bold move, given that such liberties agencies were subjected to pressure from the US authorities. Recall that the agency Standard & Poor's (S&P), which downgraded the US rating to "AA +" with a stable outlook in August 2011, when Congress was also at an impasse due to the inability of the Republicans and Democrats to agree on raising the level of public debt, has already experienced a lot problems. US authorities have said they are ready to impose $5 billion sanctions against S&P for bank losses. Not surprisingly, Moody's - another member of the "big three" rating agencies - has not yet announced a revision of the US rating.
According to experts interviewed by NG, the downgrade of the US rating should not have a tragic effect on other countries. Another thing is the onset of a technical default. This event can significantly increase the level of prices in Russia, and at the same time bank rates on loans, says Daniil Markelov, an analyst at the Investkafe agency. "It is unlikely that the US will bring charges against Fitch for their unflattering outlook," the analyst said. In turn, the managing director of UFXMarkets, Dennis de Jong, notes that in 2011 there were already similar events, only then the S&P agency downgraded the US rating from “AAA” to “AA +”, which is much more important for investors than the revision of the forecast rated "negative". “At that time, stock exchanges around the world experienced strong pressure from the dollar, which, despite everything, remains the only reserve currency and safe haven during turbulence in financial markets. This is the situation today, he notes. - However, the downgrade of the US rating will not have a direct impact on the ratings of other countries, most likely it will lead to a revision of the share of US securities in the investment portfolios of states. If we talk about Russia, we believe that the strengthening of the dollar, which may be triggered by a downgrade of the US rating by the three agencies, will lead to a decrease in oil prices, and therefore exacerbate the structural problems of the economy, which are covered by high oil so far.” Nevertheless, the revision of the holy of holies, the rating of the United States, and even more so its downgrade, is a bold decision, positioning the agency as an independent expert, the expert believes.
Vice President of Fondservisbank Valery Golev is much more categorical. “The US rating has not been AAA for the past four or five years, so this is a belated reaction from a single agency,” he said. In any case, the US retains fairly strong levers of influence on the global economy. Perhaps there are elements of the game to reduce the dollar, which is also beneficial. American economy».
“Most of the Russian reserves are placed in US securities. And that's why our economy is simply tied to the United States," recalls Tamara Kasyanova, CEO of 2K Audit - Business Consulting / Morison International.
International rating agency Fitch on Monday affirmed Russia's long-term sovereign issuer default rating (IDR) at 'BBB', downgrading its outlook to 'stable' from 'positive', the agency said.
"Political uncertainty in Russia has increased and the outlook for the global economy has worsened since the agency last confirmed the rating (of Russia - ed.) in September 2011," the release says.
In the long term, steps towards democratic development will lead to better governance in the country, which could have a positive impact on Russia's ratings. In the short term, Fitch notes, uncertainty has increased.
According to the agency, political uncertainty increases the risk of capital outflow, which could negatively affect the indicators of international reserves and the ruble exchange rate.
On Monday evening, Russian presidential aide Arkady Dvorkovich wrote on his microblog on Twitter, commenting on the change in forecast, that the combination of Russian political risks and problems in the EU is an acceptable explanation, but a hasty decision.
As the Bank of Russia reported earlier in January, the net outflow of capital from the Russian Federation by the private sector in the fourth quarter of 2011 amounted to $37.8 billion against a net outflow of $19.3 billion for the same period in 2010, for the whole of 2011 the outflow amounted to $84. $2 billion versus $33.6 billion in 2010.
The volume of international reserves of the Russian Federation, according to the Central Bank of the Russian Federation, as of January 1, 2012 amounted to $498.649 billion against $479.379 billion as of January 1, 2011. Thus, the indicator grew by 4% over the year.
The real effective exchange rate of the ruble (against the currencies of the main trading partners of the Russian Federation, taking into account inflation), as previously reported by the regulator, in January-December 2011 increased by 3.9%.
"Although Russia still has a financial buffer in the form of the National Welfare Fund, the main positions of public finances have deteriorated," Fitch experts believe.
According to the Ministry of Finance of the Russian Federation, the volume of the Reserve Fund of the Russian Federation in 2011 increased by 4.7%, to 811.52 billion rubles, the volume of the National Wealth Fund (NWF) - by 3.7%, to 2.794 trillion rubles.
In addition, Fitch notes, Russia remains vulnerable to a possible drop in oil prices.
If the global downturn resumes, Fitch notes, Russia will have less room for fiscal stimulus than in 2008. Such global economic risks have increased in light of the eurozone crisis.
Fitch, meanwhile, notes "encouraging developments" in macroeconomic policy RF. As previously reported, the inflation rate in 2011 is at 6.1% (the best result in the last 20 years).
"In the medium term (these changes - ed.) could potentially cause inflation to decrease and vulnerability to changes in oil prices and improve financial stability," the report says.
"A reduction in the non-oil and gas budget deficit, a sustained decline in inflation, or significant structural reforms that improve the business climate could lead to an upgrade. A sharp drop in oil prices or political turmoil could potentially trigger a negative rating action," Fitch concludes.
The insurer's national scale rating was downgraded to "B(rus)" from "BB-(rus)". "Fitch believes that the company's current business model is not viable given the significant deterioration in the operating environment in the motor third party liability segment," the press release reads.
According to Prime agency sources, on August 1 the administrative commission of the Federal Financial Markets Service for reviewing cases of insurers recommended limiting Rossiya's license for car hull, but the final decision has not yet been made.
Noting the negative budget trends. The agency affirmed the Krai's long-term foreign and local currency ratings at 'BB+' (satisfactory). The long-term rating of Krasnoyarsk on the national scale has also been confirmed at the level of “AA(rus)” (stability), the short-term rating in foreign currency is “B” (the outlook is favorable, but some vulnerability is noted). Fitch also did not change the ratings of Krasnoyarsk Territory's three outstanding senior unsecured bonds totaling RUB 33.3 billion, remaining at 'BB+/AA(rus)' (stability). However, overall there is a deterioration in forecasts “for the region's fiscal performance, which is expected to be affected by changes in the fiscal regime in 2012,” the press release said.
"The international rating agency Fitch Ratings confirmed the ratings Altai Territory: long-term ratings in foreign and national currency at the level of "BB +", the national long-term rating at the level of "AA (rus)". The forecast for long-term ratings is Stable," the press service of the regional administration reports. The rating report has been published on the agency's website. Registration is required to read.
The first credit rating was assigned in 2008. In September 2009, the agency upgraded its value from "BB-" to "BB" on the international scale and from "A+(rus)" to "AA-(rus)" on the national scale. In August 2010, the credit ratings of Altai Krai were affirmed. In September 2011, the rating outlook was changed from "Stable" to "Positive" by the agency. In August 2012, the agency upgraded Altai Krai's long-term foreign and local currency ratings from 'BB' to 'BB+' and the national long-term rating from 'AA-(rus)' to 'AA(rus)'. The rating outlook is Stable.
January 13, 2014, Moscow – The international rating agency Fitch has affirmed Sberbank's ratings. Long-term ratings in foreign and local currencies are affirmed at 'BBB', outlook Stable. Short-term foreign and local currency ratings affirmed at 'F3'. Support rating affirmed at '2'. The Long-term Support Level has been affirmed as 'BBB'. Viability rating affirmed at 'bbb'. National long-term rating affirmed at 'AAA(rus)', outlook Stable.
"Sberbank's Long-term IDR is currently driven by Fitch's view of the bank's standalone profile, which is reflected in the 'bbb' VR, and therefore the rating will not come under downward pressure even if the agency's expectations of government support for the bank are reduced," the agency said. .
“The affirmation of Sberbank's 'bbb' VR reflects its dominant market position, stable deposit base, currently strong profitability and good liquidity. In addition, the rating takes into account the good quality of the bank's assets and acceptable capitalization,” the agency said in a press release.
At the beginning of March 2013, the official website of the government of Mari El proudly published information that the region had retained the credit rating assigned to it in 2012 by the leading international agency Fitch Ratings.
Let us draw our readers' attention to the fact that from the multi-page report on the economic development of Mari El, which was prepared by Fitch Ratings experts, only one tablet and several lines of text were published on the official website of the RME government. On the basis of this tablet, it was concluded that “Fitch Ratings expects the republic's debt management policy to remain conservative, which will allow maintaining debt and debt coverage ratios at an acceptable level”.
The forecast of the long-term and short-term rating of Mari El according to Fitch Ratings for 2013-2014 remains "stable". This means that the rating is unlikely to change, ie. debt will continue to grow and further deterioration economic situation in the region.
Let us now turn to the rating report for the Republic of Mari El prepared by Fitch Ratings experts in March 2012. According to Fitch Ratings statistics, the socio-economic indicators of Mari El are weaker than the average for the constituent entities of the Russian Federation.
Yes, gross regional product(“GRP”) was about 35% lower than the national median in 2010. In terms of GRP per capita, Mari El ranked 72nd among 83 constituent entities of the Russian Federation in 2010. The average salary in the region is 25% below the national median. The unemployment rate according to the methodology of the International Labor Organization ranges from 10.5% to 11.6%, which is higher than the average in Russia (7.5%).
According to Fitch Ratings for 2013, the republic's operating balance decreased to 8.5% of operating income by the end of 2012 compared to 12% in 2011.
The region's pre-debt deficit widened to 9.6% of total revenue in 2012 (2011: 6.8%), driven by higher operating costs, and remains manageable.
The agency expects Mari El's direct risk to increase further to approximately 45% of current revenues in 2013 and to 50% in 2014-2015. We note in particular that direct risk increased to RUB 7.2 billion in 2012 from RUB 5.4 billion in 2011. Only through obtaining medium-term bank loans and domestic bonds with extended maturities was it possible to avoid a significant economic crisis. But constantly taking loans and at the same time not developing innovative areas in the economy will not work for a long time - the time will come to pay off multibillion-dollar debts and loans!
Fitch Ratings experts note that weak debt ratios are becoming a negative rating factor. A downgrade or outlook revision to Negative could result from a sustained deterioration in operating performance with operating margins below 5% and growth in direct risk above 50% of current earnings over the medium term.
And public debts are growing exponentially in Mari El. According to the report of the Ministry of Finance of the RME (according to the official website of the government of the republic), the consolidated debt of the region as of March 1, 2013 is 7 billion 908 million 318.5 thousand rubles. According to the data of the Federal State Statistics Service (FSGS) for the RME in 2000, the maximum amount of the region's consolidated debt was 562.3 thousand rubles. Thus, over the past 10 years, the consolidated debt of Mari El has increased by more than 14,000 (fourteen thousand) times!!!
According to the data on the repayment of state borrowings of the RME on March 1, 2013, published on the official portal of the Ministry of Finance of Mari El, long-term loans, which the government of Leonid Markelov thoughtlessly collected, will be repaid within 20 years - until November 2033! In fact, the debts that the government of Leonid Markelov has incurred will be inherited by the grandchildren of the inhabitants of Mari El!
The situation is no better in the non-state sector. At the end of December 2012, the total debt on obligations (accounts payable, debt on bank loans and loans) of organizations amounted to 68.8 billion rubles, of which overdue - 1.6 billion rubles, or 2.4% of total amount debt. 17.1% of total accounts payable are loans issued to private traders (6.5%) and payments to state off-budget funds (10.6%).
Quite an acute situation with the budget deficit of Mari El. According to the FSGS for RME in 2001, the marginal budget deficit of the region was 36.4 million rubles, and in 2012 the budget deficit amounted to 1 billion 822.3 million rubles, or increased by 50.6 times!
According to the leading Russian rating agency RIA Rating, the Center for Economic Research, in 2012 Mari El entered the top ten regions of Russia with the highest (in percentage terms) indicators of public debt growth. State debt Mari El on January 1, 2013 amounted to 78.5% of the budget revenue of the constituent entity of the Russian Federation, excluding gratuitous receipts from the federal center.
It should be noted that the Ministry of Finance of the Russian Federation proposes to raise the question of trust in the governors of those regions that the leadership has brought to a pre-bankruptcy state. This was stated by the head of the ministry Anton Siluanov at the expanded board of the Ministry of Finance, at the end of April 2012, where Vladimir Putin was present. “We have such a mechanism when, in the event of an increase in accounts payable, a temporary administration regime is introduced in the subject. I propose that if the administration of the region allows non-fulfillment of its obligations, an increase in accounts payable, to raise the issue of confidence in the governor by the President of the Russian Federation. In fact, bringing the region to bankruptcy is a serious reason to talk about the qualifications of the leader,” Russian Finance Minister Anton Siluanov emphasized in his report.
In conclusion, we note that the leading Russian rating agencies (for example, Expert RA, and the Center for Economic Research RIA Rating) are even more critical than Fitch Rating in assessing the socio-economic situation in Mari El. In particular, according to the analytical report of the Expert RA rating agency, according to the financial stability rating, Mari El belongs to the group of significant decline, according to the economic stability rating - to the group of significant decline, according to the social stability rating - to the group of deep recession and according to the complex anti-crisis stability rating - to the group of significant decline.
The international rating agency Fitch has confirmed the long-term issuer default ratings of Germany and Luxembourg "AAA" and the short-term rating "F1 +" with a stable outlook on them, according to a press release from the agency, reports Prime. The ceiling on country ratings has also been confirmed at 'AAA'.
Fitch notes that the ratio of total public debt to GDP has begun to decline in Germany, in contrast to France, the UK and the US. The agency expects this figure to decline to 79.4% in 2013 from 81% in 2012. Despite the fact that the average ratio of total public debt to GDP for countries with a rating of "AAA" is 46.7%, the German indicator meets the criteria for the highest rating.
The agency believes that the risks associated with the eurozone crisis are reduced due to economic recovery and ECB policy.
Fitch expects German GDP growth to pick up to 1.6% in 2014 and 2015 from 0.4% growth in 2013. GDP growth is highly dependent on the continued gradual recovery of the eurozone economy, which is the largest export market for Germany.
"Approaching the ratio of public debt to GDP to the level of 90% may put pressure on the rating, but Fitch believes that such a scenario is unlikely," the agency said in a release.
Fitch notes that Luxembourg is a high-income economy with favorable dynamics compared to other eurozone countries. Luxembourg has demonstrated one of the fastest economic recovery among the eurozone countries. The country's GDP growth in 2013 accelerated to 2% compared to 0.2% in 2012.
"The government deficit-to-GDP ratio remained low in 2013, likely closer to 0.6% in 2012," the release said.
The agency expects GDP growth in 2014 to be 1.8%. In 2015, it will slow down to 1.4% due to the limitation of domestic demand by fiscal consolidation. Inflation in the country until 2015 will remain below 2%.
The outlook for the ratings is stable, which means there is little chance of changes in the near future. Meanwhile, such changes are possible in the event of an intensification of the debt crisis in the eurozone and instability in the financial sector. In this case, a negative rating action could be taken.
The level of confidence in the hryvnia will weaken, and the demand for foreign currency will grow against the backdrop of a violent confrontation between law enforcement officers and demonstrators.
"Political uncertainty will continue to weigh on Ukraine's credit profile until the presidential elections in February 2015, despite the agreement with Russia," the statement said.
At the same time, Fitch notes that the weakening of the position of President of Ukraine Viktor Yanukovych this year may affect Russia's willingness to continue payments. If Russian lending is interrupted, the hryvnia, which has collapsed this week due to recent events, could come under additional pressure.
“We do not expect the authorities to switch to a more flexible exchange rate policy, and the hryvnia forecast will remain at the level of UAH 8.3/USD. this year thanks to a Russian financing agreement,” the statement reads.
Meanwhile, the dollar on the interbank foreign exchange market and in exchange offices continues to rise in price, writes LIGABusinessInform.
On the interbank market, compared with the minimum value since the beginning of 2014 of 8.210 / 8.225 UAH. per dollar (purchase / sale) on January 21, the national currency sank to UAH 8.397 / 8.417. per dollar. The change was -0.187 / -0.192 UAH. (-2.27% / - 2.33%).
Not all market participants are ready to publicly comment on the processes on the interbank market. A number of experts refuse to comment, referring to the uncertainty of the situation in the country and the lack of clear signals regarding the exchange rate policy.
One of the sources of the publication, on condition of anonymity, expressed the opinion that the NBU, through the hands of state-owned banks and major players The market is testing how much exchange rate fluctuations can be tolerated without creating a panic. So far, this level seems to be 8.4-8.45 UAH. per dollar, but not more.
Another anonymous source in the treasury of one of the commercial banks also links the low activity of the NBU on the interbank market with a possible planned transition to a higher rate - from UAH 8.40. per dollar.
The expert explains his assumption by the fact that the National Bank, which, as a rule, actively protects the hryvnia with foreign exchange interventions, currently does not see a big threat in the exchange rate change.
Recall, according to the National Bank of Ukraine, there are currently no real prerequisites for the devaluation of the hryvnia.
St. Petersburg, 25 November. The international rating agency Fitch Ratings has confirmed the long-term foreign and national currency ratings of St. Petersburg at BBB, the short-term foreign currency rating at F3 and the national long-term rating at AAA(rus), BaltInfo was told by the press service of the Finance Committee.
At the same time, Fitch Ratings affirmed at BBB and AAA(rus) the ratings of the city's senior unsecured bonds outstanding on the domestic market in the amount of RUB 10 billion.
The international rating agency Fitch Ratings confirmed Moscow's credit rating at BBB with a stable outlook. This means that the Russian capital has good creditworthiness and does not have a lot of debt.
By 2016, Moscow's budget will lose 150 billion rubles By 2016, Moscow's budget will lose 150 billion rubles
The Moscow City Duma adopted the Moscow budget for 2011 in the third reading The Moscow City Duma adopted the Moscow budget for 2011 in the third reading.
According to the agency's analysts, the city has a strong economic performance, based primarily on sustainable budget execution and a good debt-equity ratio. The BBB level on the international scale is currently assigned to the Russian Federation and, accordingly, its regions and organizations that issued securities cannot be higher. In addition to Moscow, only three subjects in Russia have the same indicator - St. Petersburg, Tyumen and the Khanty-Mansiysk Autonomous Okrug.
Moreover, experts note that in reality the level of the rating of the Russian capital is even higher, but it is limited by the indicator of the country.
When analyzing, we looked at the level of Moscow's debt and its ability to service debt on time and pay off existing debt obligations, - Vladimir Redkin, an analyst at Fitch Ratings, explained to RG. - Moscow currently has a very low level debt, amounting to about 12 percent of current income, in physical terms, it should amount to 179 billion rubles at the end of the year.
Almost all of the capital's debt exists in the form of securities issued by the city, analysts say. The capital bears its obligations on them regularly, that is, it provides all payments on time. At the same time, the rating agency emphasizes that they give Moscow a favorable assessment, despite the fact that tax revenues to the city budget decreased last year due to changes in tax legislation. The largest Russian companies, predominantly employed in the oil and gas sector, began to pay more taxes where their real production facilities are located, rather than their headquarters. The shortfall in Moscow's budget revenues due to this amounts to billions.
Changes in tax legislation led to the fact that in 2012, according to various estimates, from 40 to 100 billion rubles fell out of the Moscow budget tax revenue, - says Kirill Nikitin, director of the Center for Tax Policy at the Faculty of Economics of Moscow State University. - This year, certain pre-crisis processes also took place in the Russian economy, which led to a rather sharp reduction in income tax revenues, and this also did not affect Moscow in the best way. The city authorities in this situation behaved absolutely adequately and began to work to ensure stable revenues to the budget. For example, they began to provide benefits to businesses not just because the business asked for them, but under specific obligations for investments and jobs. If the obligations are met, then the benefits come. In general, compared to other subjects, Moscow pursues an extremely high-quality tax policy and lives entirely at its own expense.
According to Kirill Nikitin, the efforts of the city government to transfer the shadow sectors of the economy to a legal position also play a positive role. This concerns the fight against "gray" salaries and illegal migrants, attempts to make the rental housing market transparent and the creation of favorable conditions for legal taxis. In many ways, all these measures, in turn, make Moscow more and more attractive for investors, experts say. The total volume of investments in the economy of the Russian capital at the end of this year should reach a record $35 billion, that is, an increase of seven percent compared to last year - then $32.4 billion was invested in various projects in the city.
Fitch Ratings forecasts that Moscow's debt will rise to 193 billion rubles by the end of 2015, but will remain at a low level of 12 percent of current revenues, because budget revenues will increase and amount to, according to the calculations of the city authorities, 1 trillion 694 billion rubles. "The downgrade of Moscow's ratings is unlikely," the agency notes.
Purchase by the American company Cargill Inc. A 5% stake in UkrLandFarming PLC (ULF) is a positive factor that reflects the interest of a major international trader in the promising Ukrainian agricultural sector.
This was reported to Ukrinform on Tuesday by the rating agency Fitch Ratings.
“Fitch Ratings notes that the news of the acquisition by Cargill Inc. A 5% stake in UkrLandFarming PLC (ULF) is a positive factor for ULF, reflecting the interest of a major international trader in agricultural commodities in the promising Ukrainian agricultural sector.
As noted in Fitch Ratings, the transaction took place through the sale of shares owned by Oleg Bakhmatyuk, the main shareholder of ULF. The agency believes that Cargill will not be involved in the management of ULF and does not plan to increase its stake in the Ukrainian company in the near future. Also, the event is neutral for ULF in terms of cash flows, as it does not provide for new capital injections into the company.
The rating agency believes that the deal between Cargill Inc. and UkrLandFarming does not have a significant impact on ULF's creditworthiness "due to Cargill's small equity stake." However, Fitch Ratings believes that the strategic partnership will bring some operational benefits to ULF, including higher grain trade volumes between the parties and increased grain exports to China.
Earlier it became known that the largest American food company Cargill acquired a 5% stake in UkrLandFarming. The deal cost Cargill $200 million.
At the indicated level, the agency affirmed the ratings of Belarusbank, Belinvestbank, BPS-Sberbank, Belgazprombank and Bank BelVEB (Belarus).
The affirmation of the ratings of the listed banks with a Stable Outlook reflects Fitch's base-case expectation that "the Republic of Belarus will be able to avoid a major macroeconomic and banking crisis for the rating outlook period (12-18 months)," the rating agency said in a December 5 statement. in BelaPAN.
At the same time, the agency's analysts note, "significant risks for the ratings of banks, taking into account the structural weakness of the economy" and pressure on external finances, remain.
"The republic's current account deficit worsened to about 9.5% of GDP in the first half of 2013 (in 2012 - 2.7%) mainly due to weaker Russian demand for exports from the Republic of Belarus. This deficit led to increased pressure on foreign exchange reserves (which fell $2.1 billion in 10M 2013 to $6.8 billion) and the exchange rate (down 10% YtD to date),” Fitch said in a statement.
"Weaker demand, growing inventories and high borrowing costs have resulted in weaker credit metrics for many large companies, pointing to a potential further deterioration in the quality of banks' loan portfolios (although this is not yet reflected in the reported numbers)," Fitch analysts said. .
At the same time, "tightening of monetary policy and supervision" led to a shortage of ruble liquidity in the national currency in banking system and a decrease in the capital stock of banks. "The latter point is mainly due to the higher risk weighting for foreign currency loans at 150%," Fitch analysts state.
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And Standard & Poor's. It has two headquarters - in New York and London, as well as 51 representative offices. The staff has 1,500 employees. Ratings were assigned to 3,100 financial institutions, 1,600 banks, 1,400 insurance companies, 1,200 corporations, 89 states and 45,000 municipalities. The company has existed since 1912 as a publishing house, and since 1924 as a rating agency.
Fitch Ratings assigns international and national ratings, which are officially referred to as Issuer Default Ratings.
"AAA" - the highest level of creditworthiness, the lowest expectations for credit risks. Assigned only in case of exceptionally high ability to repay financial obligations in a timely manner.
'AA' - very high creditworthiness, very low credit risk expectations and very high ability to repay financial obligations on time.
"A" - high creditworthiness, low expectations for credit risks, high ability to repay financial obligations in a timely manner.
'BBB' - good creditworthiness, current low expectations for credit risks, adequate ability to repay financial obligations in a timely manner. This rating level is the lowest among investment grade ratings.
"BB" - speculative rating. A 'BB' rating indicates that there is room for credit risk to develop, especially as a result of adverse economic developments that may occur over time. However, alternative business or financial resources may be available to companies to enable them to meet their financial obligations. Securities rated at this level are investment securities.
"B" is a largely speculative rating. For defaulting issuers and securities, 'B' ratings indicate significant credit risk, but a limited cushion remains. At the moment, financial obligations are met, but the ability to continue payments depends on a stable and favorable business and economic environment.
"CCC" - securities obligations are met, default appears to be a real possibility. The ability to meet financial obligations depends entirely on a stable and favorable business or economic environment.
"CC" - liabilities, default appears probable.
"C" - obligations are fulfilled, default seems inevitable.
"RD" - this rating level indicates that the issuer has not made timely payments (taking into account the applicable grace period) for some, but not all of the main part of the obligations and continues to make payments for other types of obligations.
2. The national rating is set in the same way, but in the format "AAA(xxx)", "AA(xxx)", "A(xxx)", etc. The suffix indicates the country in which it is assigned. The international rating of an organization cannot be higher than the rating of the country. The national rating is relative, for it the highest rating scale is the most reliable borrower in the local market, that is, the state.
In addition, Fitch has an additional gradation for national ratings - an 'E(xxx)' rating, which indicates that there is not enough information to assign. This category is used if the rating was previously suspended due to the lack of documentation from the issuer necessary for observations and data support.
Both international and national ratings can be supplemented with a rating watch mark (“under control”), as well as the so-called forecast - a possible revision within a year or two. The rating outlook can be positive, stable or negative. A plus (+) or minus (-) sign is used to indicate an intermediate grade.
Fitch Ratings is an international agency that provides independent assessments of the creditworthiness of banks, states and companies, as well as analytical data and related information. Fitch Ratings Inc. is engaged in the assignment of national and international ratings, which are officially called " Issuer default ratings» for more than 150 regions of the world.
The international rating agency Fitch Ratings has opened 51 offices around the globe. The company's specialists have many years of experience in the field of analytics and have specific knowledge of the internal economic mechanisms of many countries, which are used in the analysis of capital markets. Analytics and forecasts from Fitch are traditionally considered reliable and transparent.
Fitch ratings are an expert opinion on the ability of issuers to pay interest on financial obligations. Investors rely on Fitch's credit rating when predicting the return on investment under the terms and conditions under which it will be made. The list of rating participants includes sovereign, corporate, insurance, financial and banking issuers. It also includes financial government agencies, securities and other obligations issued by such issuers.
The main factors that Fitch evaluates the rating of banks when determining their positions in the individual scale are: stable balance(including capitalization.) and its transparency, level of profitability, client list, management, growth prospects, and economic environment. Also of great importance is the volume of the bank, expressed in its own funds, business policy, and capital protection.
According to the same principle, a national rating is assigned. Its values are also displayed, but with the addition of a suffix: " B(xxx)», « BB(xxx)», « BBB(xxx)».
The suffix is the code for the state to which the value is assigned. For example, the long-term Fitch credit rating of Russia, expressed in foreign currency, in September 2017 looked like this: BBB(rus)».
The international rating of the company is always lower than or equal to the rating of the region. The national rating is a relative indicator, the highest scale for which is the level of the most reliable borrower of the local market - the state. Also, the Fitch agency offers a separate category for state ratings - "E (xxx)", which means there is a lack of data for assignment.
There is an addition to the ratings in the form of a note " under control» ( rating watch) and three types of forecasts ( likely to be reviewed in a year or two): « negative», « stable" and " positive". Intermediate positions in the ranking are indicated by the signs " a plus" and " minus».
December 24, 1913 American John Knowles Fitch founded a publishing company in the US capital Fitch Publishing Company, which began publishing financial statistics. Over time, Fitch's firm took the lead in delivering significant statistics to the investor community.
In 1924, the scale used today was introduced from “ AAA" before " D” in response to the growing demand for financial research.
This scale, supplemented by analytics from Fitch Publishing's experts, has quickly become a recognized reference point for many financiers, helping to make important investment decisions related to fixed income instruments.
In 1975, a rating agency was created Fitch Ratings Inc., and in 1989 the company began to actively grow, increasing capital and staff. In the 1990s, the firm continued to grow, adding new lines of work. In 1997, the Fitch agency takes a step towards globalization by teaming up with IBCA Limited and significantly expanding its presence in the world.
Buying a business Duff & Phelps Credit Rating Co. in 2000 became the second stage in the formation of a truly global analytical agency. Later, Fitch Ratings included Thomson BankWatch, further expanding our outreach and fueling the growth of affiliates and offices across the planet.
In 2008, the agency decides on more separation of analytics and credit ratings. For this, the development Fitch Solutions– division dealing with analytical tools.
The headquarters of the international rating agency Fitch Ratings are located in London and New York with many divisions around the world. The company is part of the Fitch group owned by corporations Hearst Corporation, fimalac and S.A.. The controlling stake is owned by the French fimalac.
As a result of several acquisitions and rapid growth, the Fitch Group today employs more than 2,100 employees. For 2015, the group of companies was represented by the following composition.
The agency has been present in the CIS for about 20 years, working with a large number of issuers, assigning national and international credit ratingsFitch to financial institutions, banks, local and regional authorities, insurers, governments and issuers from the corporate sector. It also ranks transactions in the area of structured finance and debt securities with fixed obligations.
When the corresponding message from the Fitch company does not contain information about a foreign or national currency, then it should be considered that this rating is presented for a foreign currency.
This scale is based on expectations regarding the repayment of debt funds in the event of defaults, bankruptcy or insolvency of creditors. This indicator is not intended to give an accurate assessment of the degree of repayment of interest on obligations and is purely informative.
The agency also creates individual ratings of Fitch banks and maintenance ratings, which consider the level of probability of these institutions of financial difficulties leading to the need for cash injections, as well as their provision when the situation arises. Financial stability ratings are also published for insurance companies.
The Fitch Agency publishes national ratings for certain countries that assess the creditworthiness of an issuer with minimal credit risk in the region. Such a rating in most cases reflects all monetary obligations guaranteed or issued by the government.
When the "expected" level is published, it shows the assignment of a full value, which is based on the forecasts of agency analysts regarding the final documentation of obligations. Often such a rating is based on a study of the issuer's latest documents and does not differ in any other way from the usual scale.
Fitch Ratings includes a number of private ratings. These include, for example, companies that do not have payment obligations. Also, a non-public rating may be needed by the issuer forsome regulatory tasks or other purposes. Such ratings are usually given to the rated issuer itself. Private ratings are created through the same analysis as published ratings.
Issuer ratings are the scales assigned by the Fitch agency to foreign currency issuance programs of sovereign or corporate issuers that are related purely to ordinary money issuance within the limits of the relevant measures. These ratings do not always correlate with each currency issue in the program.
Interest payment ratings receive interest payments on debt. In this case, the possibility of the holder of securities not receiving part of the investment or their entire volume due to the return of the principal debt is not taken into account.
Principal scales show the probability that the holder of securities will receive their initial investment before or at the time of their redemption.
This rating is the opinion of Fitch analysts regarding the risk of applying capital controls and regulation. money market the government of the country. Such measures significantly impede or completely block the ability of the private sector to convert the national currency into the currencies of other states. It also excludes the possibility money transfers non-resident creditors, which creates conversion and transfer risks.
Given the tight interplay of government credit risk, currency conversion risk, and transfer risk, where the country ceiling is higher on the scale than the sovereign rating, issuer positions that are assigned at the country ceiling level often exhibit more tangible volatility .
Fitch ratings are relative measures of credit risk. They are based on data obtained directly from borrowers, issuers, insurance professionals and other sources that Fitch experts believe are reliable. However, the company does notaudit and cannot verify the accuracy of the information provided, however, is not responsible for the risks arising from erroneous credit ratings. Therefore, a Fitch rating assigned cannot be a guarantee of the effectiveness of actions based on it.
Also, Fitch's credit rating is limited to narrowly focused aspects of risk and is not intended to reflect other operational or financial risks associated with obligations or issuers, other than credit. In order to understand the completeness of the risks for each case, it is necessary to consider what the corresponding scale shows.
Ratings from Fitch Ratings, like other similar institutions, play an important role in the stock market. The published rating of a company often becomes a determining factor in the dynamics of market prices for its shares, as well as assets dependent on it.
Often, lenders and investors conduct an initial assessment of the prospects of prospective partners, relying only on the ratings of agencies, Fitch and Standard & Poor's. However, experienced participants in the stock markets often express doubts about the transparency and true independence of the work of rating agencies.
Rating agencies are commercial corporations primarily aimed at profit, so it cannot be ruled out that there are some machinations to manipulate the markets, despite assurances of complete honesty and objectivity.
In 2008, Fitch took a serious hit to its reputation by assigning the highest rating to soon-to-be bankrupt companies. Enron and Lehman Bros..
It follows from this that the influence of agencies on the markets can only be short-term, generating short-term volatility under the influence of psychological factors. After a short time, a correction will occur, which will be dictated by the objective market conditions of the current moment.
It should also be taken into account that a credit score is payable service, which is acquired by corporations or states in order to be able to offer their assets to world investors. Finally, ratings are published with a delay, based on data from the past.
All of these factors lead to widespread distrust of the data of rating agencies.
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Fitch Ratings has upgraded the ratings of six Russian regions Fitch Ratings raised long-term Issuer Default Ratings (IDRs) in the foreign and domestic... regions. It is reported by "RIA Novosti" with reference to the message Fitch Ratings. The upgrade from BBB- to BBB affected Moscow and... “stable”. The decision to upgrade the rating of certain regions followed the decision Fitch Ratings to raise the overall rating of Russia. Long-term credit rating of Russia... Fitch assesses the prospects for Russian food retail ... the retail market was named by analysts Fitch Ratings- in the review of RBC. Consolidation of retail chains will continue at the expense of the regions Fitch Ratings expects the top three retailers ... to trade in food.” AT Fitch Ratings note that "this will not happen immediately, as changes will take time." According to Fitch Ratings, “Magnet has enough ...Economy, 21 Sep 2018, 14:41
Fitch downgrades global growth forecast due to US actions Rating agency Fitch lowered the forecast for global economic growth in 2019. Such a decision... the US side and the ongoing trade war with China. Head economist Fitch Brian Coulton pointed out that the US decision to introduce new duties on ... 0.2 percentage points, up to 6.1%, is indicated in the message Fitch. Representative Fitch stressed that this year the world economy, despite... Fitch noted the resilience of the Russian economy to US sanctions ... year. Potential risks to the current outlook, as noted in the announcement Fitch, are due to sustained pressure on the depreciation of the Russian ruble. Fiscal policy... A US that impedes the servicing of existing sovereign debt is likely,” concluded the Fitch. There is a corresponding clause in the draft of new restrictions against Russia, which ... Fitch Ratings Fitch Ratings Fitch ... Fitch spoke: how the agency assessed the liquidity risks of private banks ... possible risks for the rest," the senior director explained to RBC Fitch Ratings CIS Alexander Danilov. Ratings Fitch Ratings assigned 51 Russian bank, the list on the agency's website testifies, while from the mentioned FC Otkritie, Binbank, Promsvyazbank and MKB, the rating Fitch ... Fitch In Russia, the rating agencies S&P, Moody "" s and Fitch became affiliates ... Friday, April 14, international rating agencies S&P, Moody's and Fitch in the register of branches and representative offices of foreign credit rating agencies, it says... Investment stability of the Novosibirsk region was confirmed by experts ... of the region, which indicates the high credit quality of the region, the agency reports Fitch Ratings. Experts noted the improvement in budget indicators for the receipt of own income and ... income. Earlier, RBC Novosibirsk wrote that in the fall of 2016 the agency Fitch Ratings affirmed the region's long-term credit ratings at the previous investment grade of "BBB... Fitch withdraws ratings of Tatarstan and Kazan ... and the rating of the republic. “The national scale ratings have been withdrawn because Fitch withdrew its ratings on the national scale in Russia due to changes in the regulatory environment for credit rating agencies in the country. Fitch. National scale ratings were withdrawn today from several Russian... Moody's Maria Malyukova. December 5, 2016 International rating agency Fitch Ratings retained Tatarstan's long-term issuer default ratings (IDRs) of the Russian Federation in the national... Fitch assigned and immediately withdrew the rating of Yamal Agency Fitch Ratings confirmed the rating of Yamal according to the Russian national scale at the maximum level “... the system of regulation of the credit rating industry in the Russian Federation. In 2017 Fitch Ratings loses the right to assign ratings according to the Russian national scale. For this... Russia's subsidiary, which does not intend to do. However, Fitch Ratings continues to rank the Yamalo-Nenets Autonomous Okrug and other Russian regions... Fitch Fitch Fitch Ratings Fitch Affirms Russia's Credit Rating One Step Above Trash ... ,3 and 2% respectively in the October forecast Fitch), according to the document. According to analysts Fitch, Russia is showing strong performance in its balance of payments... agency in a sound state of public finances. “We positively assess the decision of the agency Fitch Ratings on confirmation of the long-term credit rating of Russia for obligations in foreign...Mar 14, 2017, 02:01 pm
Fitch has upgraded the rating of the Lipetsk region ... currency and the issuer default rating has risen to BB+. Rating agency Fitch upgraded its Long-term Foreign and Domestic Issuer Default Ratings (IDRs)... Fitch FitchFinance, 15 Feb 2017, 21:59
Fitch has questions about Rosneft privatization deal ... % of Rosneft was asked questions about the deal by analysts from an international rating agency Fitch. They do not understand the funding scheme of the transaction and the structure of financial risk distribution... the day of the announcement of the agreements with the consortium. According to banking analysts Fitch, these bonds could be "part of a structured deal" - could be used ... Novosibirsk Region hopes to improve its level in Fitch Ratings ... ”, - Vladimir Gorodetsky outlined the directions for the development of the region. In autumn 2016, the agency Fitch Ratings affirmed the region's long-term credit ratings at the previous investment grade of 'BBB ... . Experts in the coming days Fitch Ratings meetings are planned with the Ministry of Finance, the Ministry of Economic Development of the region, the Department of Property and Land Relations. Fitch Ratings- American corporation, rating agency... ... Fitch Fitch Ratings Fitch Fitch has decided to withdraw all national scale ratings in Russia ... Fitch withdraws all national scale ratings in Russia. The decision will affect about 150 public ratings of Russian companies. International rating agency Fitch Ratings...in the perspective of creditworthiness opinions for investors in the Russian market. Fitch continues to expand portfolio Russian issuers international debt obligations, which in... Fitch Fitch Fitch Western rating agencies will bargain with the Central Bank ... Russia's "big three" international rating agencies (S&P, Moody's and Fitch Ratings) has not yet applied to the Central Bank for accreditation. “The term ... to the level of the rating,” says Sberbank CIB analyst Ekaterina Sidorova. AT Fitch Ratings and Moodys on Wednesday, December 21, did not respond to ... the assessment of one of the market participants, if S&P, Moodys and Fitch Ratings will accept the rules of the game of the Central Bank, then they will need at least twice... Fitch retains Tatarstan's rating outlook International rating agency Fitch Ratings retained Tatarstan's long-term issuer default ratings (IDRs) of the Russian Federation in the national... Fitch Ratings improved the outlook on the ratings of Tatarstan and eight other Russian regions. According to experts, ratings Fitch Give regions the opportunity... Fitch Affirms Tyumen Oblast with a Stable Outlook International Agency Fitch Ratings published its assessment of the state of the economy of the Tyumen region and its forecast ... 6 billion rubles. However, since the regional public sector companies are self-financed, Fitch considers the indirect risk as low. The region maintains a positive net monetary... Fitch Upgrades Tatarstan's Rating Outlook International rating agency Fitch Ratings improved the outlook on the ratings of the republic and eight other Russian regions. Fitch revised outlook on ratings of nine Russian locals... affirmed at 'AAA(rus)' with a 'stable' outlook. October 14 Fitch affirmed Russia's long-term issuer default ratings (IDRs) in the national and... Fitch Fitch Ratings ROC Bank raised the rate on deposits to retain customers ... an outflow of funds from individuals, increasing the yield on deposits. International rating agency Fitch put the ratings of Peresvet Bank, including a long-term default rating ... liquidity," the senior director for bank ratings of the agency commented on the rating actions Fitch Ratings Alexander Danilov. According to the agency, at the end of the third quarter of 2016 ... Fitch Fitch Siluanov Praises Government After Fitch Changes In Forecast ... departments Anton Siluanov, RIA Novosti reports. “We are satisfied with the decision of the agency Fitch to improve the outlook on Russia's sovereign credit rating from "negative" to ... in this situation, other oil-producing countries." Formerly International Agency Fitch improved the outlook on Russia's long-term sovereign credit rating from "negative... Fitch Fitch The Ministry of Economic Development sees grounds for raising Russia's credit rating ... , said a representative of the Ministry of Economic Development on the eve of the announcement of the results of the revision of the rating by the agency. Fitch remained the only agency that assigned Russia an investment level, the other two ... a country with an investment grade rating, ”said the agency’s interlocutor. Last time Fitch reviewed the rating of Russian securities in April. Then the agency confirmed the investment...19 Sep 2016, 12:46
Fitch gives a stable outlook for the Lipetsk region ... agencies. The outlook for long-term ratings is stable. As the message says Fitch, the region’s economy has been “developing” in recent years, and its welfare indicators are ... rubles, but such a scenario was expected by the agency’s specialists, the report says Fitch. The agency noted the "cautious" approach of the regional administration to excess tax revenues... ... AA, official release says Fitch. At the same time, the agency announced a negative outlook for a further change in the rating. Fitch indicates that the outcome of the 23 referendum ... Britain, the country's financial system and political stability. According to experts Fitch, the results of the referendum will affect the decline in GDP growth and changes in the investment ... Fitch maintains Russia's rating at BBB- ..., "since the ruling party is expected to retain a majority in parliament". "Experts Fitch believe that the authorities will focus on preventing a repeat of the protests that took place ... EU and US sanctions against Russia in the medium term. Fitch Russian investors risk being left without ratings by Fitch, Moody""s and S&P ... that are used in the global capital market. Ratings will become invalid Agency Fitch Ratings does not rule out that it will stop assigning ratings in Russia according to the national ... analytical service of the international rating agency Ian Linnell. It means that Fitch, most likely, will not create a subsidiary (now in Russia ... for our presence in Russia, - the head of the press service told RBC Fitch Rebecca O'Neal. - Most Russian issuers strive to get both national and... Fitch downgraded the ratings Nizhny Novgorod up to "BB-" level ... 2014-2015, which led to a persistently negative current account. Fitch Ratingsdowngraded Nizhny Novgorod's Long-term Foreign Issuer Default Ratings ("IDRs")... by an increase in short-term debt, increasing refinancing pressure. Fitch expects Nizhny Novgorod's current balance to remain negative in the medium term... Fitch maintains negative outlook on Russia's oil and gas sector ... oil and gas will remain low, and the impact of sanctions will only increase. Fitch maintained a negative outlook for the Russian oil and gas sector for 2016... this is stated in a press release published on November 30 by the agency. Analysts Fitch Maxim Edelson and Dmitry Marinchenko do not expect prices to recover... then they will begin to decline by several percent a year. According to Fitch, the impact of sanctions, if they continue to operate, will gradually increase ...Section 1. History of Fitch Ratings.
Section 2 Fitch Ratings in the Russian Federation and the CIS.
Section 6. Additions to Fitch's Core Credit Rating Scales.
Fitch Ratings is an international rating agency known primarily as an international rating agency.
Fitch Solutions is a division of the Fitch Group focused on developing fixed income products and services and providing the market with a wide range of data, analytical tools and related services. Fitch Solutions is the distribution channel for materials produced by Fitch Ratings. Fitch Solutions offers research, risk and performance analytics, analysis data for portfolio management of structured finance instruments, as well as pricing and valuation services cost, consultations and trainings.
Fitch Training
The organization was founded in 1987 and was called CRR. Acquired by the Fitch Group in 2002, FitchTraining specializes in training and is based in London. The main activity of FitchTraining is training programs for specialists in the field of fixed income instruments, credit management risks and customer relationship management/originator functions. Fitch Training has a global presence and experts organizations training providers operate in the UK, Continental Europe, the US and Asia.
The main task is to provide global credit markets independent and forward-looking credit ratings, analytical studies and data.
Fitch is a group that includes:
Fitch Solutions is the distribution arm for Fitch Ratings products and services
Algorithmics is a global leader in control solutions risks companies
FitchTraining specializes in credit and corporate finance training.
The majority stake in the Fitch Group is owned by firms Fimalac S.A. (headquartered in Paris).
Fitch Ratings was founded in New York by John Knowles Fitch on December 24, 1913 as the Fitch Publishing Company.
In 1997, Fitch merged with IBCA Limited (headquartered in London), and the holding company Fimalac S.A. became the owner of Fitch.
In April 2000, Fitch acquired Duff & Phelps Credit Rating Co. (headquartered in Chicago). Later that year, Fitch bought Thomson BankWatch.
In October 2006, Fitch Ratings founded Derivative Fitch, the first dedicated international rating agency responsible for assigning ratings to market credit derivatives, conducting analytical research and providing estimates to meet the needs of this market.
AAA - The highest level of creditworthiness
AA - Very high level of creditworthiness
A - High level of creditworthiness
BBB - Sufficient level of creditworthiness
BB - Creditworthiness below sufficient
B - Significantly inadequate creditworthiness
History of Fitch Ratings
Fitch Ratings was founded by John Knowles Fitch on December 24, 1913 as Fitch Publishing. company. The firm was located in the heart of New York City's financial district and began by publishing financial statistics. Among her clients was the NYSE (stock exchange). Soon Fitch Publishing company has become a recognized leader in presenting important statistical data to the investment community through its publications such as the Fitch Bond Guide and the Fitch Equity and Bond Guide.
In 1924, to meet the growing demand for independent research on financial instruments, Fitch Publishing Company introduced the now-famous "AAA" to "D" rating scale. The rating scale, coupled with in-depth analysis by the firm's investment experts, quickly gained recognition and became the reference point for the financial community in making investment decisions in fixed assets. gain.
Fitch Ratings became one of three agencies that were the first to receive official status statistical rating organizations from the US Securities and Exchange Commission in 1975.
In 1989, a new management team came to Fitch Rating, was enlarged, and the agency began to show impressive growth. During the 1990s, Fitch Ratings saw growth across the board, including in new areas such as structured finance, by providing investors with proprietary insights, clear explanations of complex instruments/issuers, and some of the most in-depth research on the market. international rating agencies.
In 1997, Fitch Ratings merged with London-headquartered IBCA Limited, significantly strengthening Fitch Ratings' global presence and broadening its analytical coverage of banks, financial institutions and sovereigns. After the merger with IBCA Limited, the agency was owned by the holding company Fimalac S.A., which acquired IBCA Limited in 1992. This merger was the first step in the agency's quest to meet the need investors in an alternative global full-service international rating agency.
The next step in the creation of an international competitive agency was the acquisition in April 2000 of Duff & Phelps Credit Rating Co. headquartered in Chicago. Later that year, the ratings organization Thomson BankWatch was acquired. These acquisitions have enabled the agency to provide broader analytical coverage of corporate issuers, financial institutions, insurance companies and the structured finance sector. In addition, the agency was able to significantly increase the number of its offices and affiliates around the world.
Today, Fitch Ratings is a ratings agency not dedicated to providing the world's credit markets with independent and forward-looking credit ratings, analysis and data. Following growth and acquisitions, Fitch Ratings now employs over 2,100 people in 50 branches and subsidiaries around the world. Fitch Ratings has two main offices in London and New York.
In January 2008, the Fitch Group announced the development of Fitch Solutions, a division focused on providing data, analytical tools and related services. The purpose of the development of this division is to strengthen the independence of Fitch Ratings' credit ratings and research research and create a structure that will be fully focused on the development of products and services in the field of fixed assets. profit. This division provides an even deeper separation between the analytical and rating activities. In addition, it has created a comprehensive and detailed platform for the dissemination of Fitch Ratings materials.
Fitch Training is part of Fitch Solutions and specializes in training on creditworthiness and corporate finance for professionals in fixed income instruments, credit risk management and customer relationship management/originator functions. Fitch Training provides services to various financial institutions, including investment and private banks and managers firms and regulators. Fitch Training has a global footprint with training organizations based in the UK, Continental Europe, USA and Asia.
Fitch Ratings in Russian Federation and CIS
Fitch Ratings is a ratings agency dedicated to providing the global credit markets with independent and forward-looking credit ratings, insights and data. Fitch Ratings staff, based in 50 offices around the world, has global and local market expertise and analyzes the capital markets of more than 150 countries. Investors, issuers and bankers around the world note the reliability, transparency and timeliness of Fitch Ratings' analytical products.
Fitch Ratings has two headquarters - in New York and London - and 50 offices around the world. Fitch Ratings is part of the Fitch Group, which is jointly owned by Fimalac, S.A. and Hearst Corporation.
Fitch works with a wide range of issuers from Russian Federation and the CIS for more than 15 years and assigns international and national credit ratings banks, non-banking financial institutions, insurance companies, corporate sector issuers, regional and local authorities, sovereign governments. Fitch also rates cash issues of fixed income debt instruments and structured finance agreements.
Fitch offers various types of ratings. The most common of these are credit ratings. In addition, Fitch publishes other ratings, estimates and opinions on the relative financial or operating position of issuers. For example, Fitch assigns special ratings to servicers (service companies for residential and commercial mortgage transactions), as well as asset management companies and managed funds. To understand the risks in each case, you should look at the definitions of ratings (assessments) on a specific scale.
Fitch's credit ratings are an opinion on an issuer's relative ability to meet its financial obligations, such as interest payments, preferred dividend payments, and principal repayments. debt, settlement of insurance losses and fulfillment of counterparty obligations. Credit ratings are used investors to assess the return on their investment in accordance with the conditions on which they were made. Fitch's credit ratings cover corporate, sovereign (including interstate and subnational entities), financial, banking and insurance issuers, municipal and other public finance entities, as well as securities and other obligations issued by such issuers, and, finally, structured financing secured by receivables or other financial assets.
Over time, the terms "investment grade" and "speculative grade" emerged, which are shorthand for rating levels from "BBB" to "AAA" (investment grade) and from "D" to "BB" (speculative grade). The terms "investment grade" and "speculative grade" are used by market speculators and do not constitute a recommendation or endorsement of the use of any security for investment purposes. "Investment grade" ratings reflect relatively low to moderate credit risk, while "speculative grade" ratings indicate higher levels of credit risk or that a default has already occurred.
Fitch Credit Ratings do not directly measure any risk other than credit risk. In particular, the ratings do not address downside risks to the market cost rated security due to changes in interest rates, liquidity or other market factors. However, with regard to payment obligations on rated obligations, market risks can be considered to the extent that this affects the ability to issuer make the necessary payments. The ratings do not reflect market risk in terms of the liability or terms of the payment obligations (eg in the case of index-linked bonds).
In the default components of the ratings of specific obligations or instruments, the agency usually takes into account probability non-payments or defaults based on the terms of the documentation of this instrument. In some cases, taking into account special factors, Fitch may assign a rating for more than you obligations lower level than the bond documentation suggests. In such cases, the agency clearly indicates the reasons for such an opinion in the relevant rating message.
Ratings are relative measures of risk, and assigning ratings to issuers and liabilities in the same category may not fully reflect small differences in credit risk. The ratings also take into account limited and specific aspects of risk, as described below, and do not reflect other possible risks on financial liabilities, issuers' monetary positions or obligations. In each case, in order to understand the scale of risks by rating, one should look at the definition of the corresponding rating scale.
The ratings are based on information obtained directly from issuers, borrowers, underwriters, their experts and other sources that Fitch considers reliable. Fitch does not audit or verify the correctness or accuracy of such information, and undertakes no obligation to audit or verify the information, or to perform any other verification of the accuracy or completeness of the information. In the event that the information provided is found to be false or otherwise misleading, the liability assumed on the basis of such information may not be an adequate measure of creditworthiness and Fitch shall not be liable for the resulting risks. Assigning a rating to someone issuer or security should not be construed as a guarantee of the accuracy, completeness or timeliness of the information on which such an opinion is based, or as guarantee results from the use of such information.
The ratings are not a recommendation to "buy", "sell" or "hold" any security. The ratings do not constitute a commentary on the adequacy of the market price, the suitability of a particular security for particular investors, or the application of tax exemptions or tax treatment to any payments on any securities. The ratings themselves are not factual information and therefore cannot be characterized as "accurate" or "inaccurate".
Fitch Credit Ratings do not directly measure any risk other than credit risk. In particular, the ratings do not take into account the risks of a decrease in market value due to changes in interest rates, liquidity or other market factors.
Fitch Ratings has no fiduciary relationship with any issuers, clients or others. Nothing is intended to create such a fiduciary relationship and should not be construed as creating a fiduciary relationship between Fitch Ratings and any issuer or between Fitch Ratings or any rating user. Fitch Ratings does not provide any parties with any financial or legal advice, does not conduct, and does not provide accounting, valuation or actuarial services. The rating should not be considered equivalent to such recommendations or services.
Ratings may be amended, clarified, placed under Rating Watch, and withdrawn as a result of changes, additions, clarifications, unavailability or inadequacy of information, or for any other reason that Fitch deems basis for such a rating action.
The assignment of a Fitch rating does not constitute permission from the agency to use its name as a reference to expert opinion in connection with any registration documents, prospectuses money issues or other documentation prepared in accordance with any securities laws.
International credit ratings refer to liabilities in foreign or national currency. In both cases, the ability to fulfill such obligations is assessed on an international rating scale. Ratings on the international scale, both in foreign and in national currency, are comparable in the global framework.
Ratings on the international scale in national currency are an estimate Probabilities payments in the same currency Countries, in which is based, and therefore do not take into account the impossibility of Conversion of the National Currency into foreign Currency or transfer of funds to other Countries(i.e. does not take into account transfer risk and Conversions).
Foreign Currency Ratings evaluate, among other things, the Issuer or the Notes for Transfer Risk and Conversions. Typically, for each Country, such Risk is reflected in the country ceiling rating, which limits the foreign currency ratings of most, though not all, issuers in the Country.
If the rating in the relevant message is not directly referred to as a national or foreign currency rating, then it is assumed that it is a foreign currency rating (that is, a rating that extends to obligations in all convertible currencies).
As of February 2009, a recalibration is underway, during which rating definitions are being considered in relation to obligations of government issuers in USA. More on this can be found in the Notes to the Rating Methodology dated October 7, 2008 ("Fitch Defers Final Determination on U.S. Municipal Ratings Recalibration") and July 31, 2008 ( "Exposure Draft: Reassessment of Municipal Ratings Framework").
The Recovery Rating Scale for Assets is based on the expected relative recovery rates of obligations when making payments in the event of Default, Insolvency, Bankruptcy or upon liquidation of the Lender or related collateral. Although the Recovery Rating of Assets indicates an approximate percentage range of recoveries at default (relative level), this scale is, in fact, an ordinal scale and is not intended to give an accurate assessment of a certain level of funds liability.
Fitch also assigns Banks individual ratings and support ratings, assessing, respectively, whether they will experience significant financial difficulties that will necessitate the need for support, and the likelihood of receiving external support in such a situation. In addition, the agency assigns ratings to insurance companies that reflect their financial strength.
In some Countries, Fitch assigns National Scale Ratings, or National Ratings, which are a credit rating relative to the Issuer with the lowest credit risk in the country. The lowest risk rating is generally, though not always, assigned to all Government-issued or guaranteed Financial Liabilities. National rankings are not intended to be compared internationally and have a special letter designation indicating the country. In addition, national rating levels may not be fully comparable over time, given the shifting calibration of the entire scale towards issuers with the lowest credit risk in a given Country (internationally, the creditworthiness of such issuers relative to other issuers may change significantly over time).
Additions to Fitch's main credit rating scales
In the case of a rating marked "expected" (such a rating may also be indicated by the phrase "expected to be rated" or marked in brackets "(EXP)"), this means that a full rating has been assigned based on the agency's expectations regarding the final documentation of obligations . As a rule, such rating is based on the analysis of the most recent preliminary documentation from the Issuer. The expected ratings do not have any other differences. While Fitch typically transforms Pending Ratings into Final Ratings within a short period of time, depending on when the Issuer decides to close the deal, Pending Ratings may be upgraded, downgraded or placed under Rating Watch in between the assignment of the Expected Rating and the Final Rating, as well as and final rankings.
Fitch Ratings assigns a limited number of private (non-public) ratings, for example, for companies that do not have public Debentures, and also when the rating is necessary for the Issuer's internal purposes or for regulatory purposes. As a rule, such rating is communicated directly to the rated Issuer, who is responsible for ensuring that all parties to whom the Non-Public Rating Information is disclosed receive the Information about any changes to this rating in a timely manner.
For the assignment of private ratings, the same analysis and rating committee is carried out, and then the ratings are monitored as in the case of published ratings, unless it is indicated that the rating is a point-in-time assessment.
The ratings assigned to Corporate or Government Issue Money programs (for example, medium-term Money Issue programs) refer only to the standard Money Issues under the respective program. These ratings should not automatically apply to all Money Issues under the program.
Interest ratings Payments assigned to interest Payments on debt obligations. These ratings do not take into account the likelihood that a holder of the Securities may not receive some or all of its Investments in connection with the voluntary or involuntary payment of the principal amount of the Debt.
Principal Ratings of a Debt assess the Probability that the holder of a Security will receive the amount of the initial investment before or at the Deadline redemption of the Securities.
The Country Ceiling ratings are internationally comparable and reflect Fitch's view of the Risk of Capital and currency regulation by the Government, which will exclude or significantly hinder the ability of the private sector to convert national currency into a foreign one, as well as the possibility of transferring funds to non-resident creditors, that is, it will cause transfer risk and Conversion risk. Given the close relationship between sovereign credit risk, transfer risk and currency convertibility risk, if the country ceiling is higher than the sovereign rating, then issuer ratings assigned at the level of the country ceiling may be higher.
Credit score
In certain situations, unrated issuers may request a credit assessment from Fitch. The credit score indicates what the Issuer's likely rating would be if it requested a rating. The credit assessment is carried out by members of the same analytical group that would assign such a rating. When conducting a credit assessment, all materials that the Issuer can provide are taken into account.
Among the Fitch Ratings services is a rating service, which is provided under certain circumstances to issuers, both already rated and not. An opinion formed as part of the rating service indicates to the Issuer or its agent what level of rating such Issuer or its obligations could receive based on hypothetical assumptions provided by the Issuer. Such assumptions may include options for reorganizing the structure Capital or the impact of any acquisitions or Sale of Assets. A rating service is an opinion on the level of a rating expressed by an analytical group working with the relevant Issuer. Such an opinion (including a detailed list of assumptions and restrictions on such an obligation) is undertaken by the Issuer itself, its agents or the majority owners of the Issuer / agents of the owners.
Credit opinion ("*")
An "*" in a rating level designation (for example, "BBB+*") or a mark (cat) means that this is a conditional opinion. Credit Opinions are generally not intended for publication and are used in the Work on other ratings. The conditional nature is explained in the relevant notes to the creditworthiness opinion. The credit opinion is more of a point-in-time assessment rather than an assessment that is continuously monitored. A credit opinion may be based on a lower level of Information or may indicate an indicative rating level subject to further analysis or certain events. A credit opinion may be a substantially complete analysis from which one or more (disclosed) analytical elements have been excluded, resulting in such an opinion not being a complete rating opinion. In all cases, the "*" sign indicates that the credit opinion is not fully comparable in all respects with published ratings of the same level.
Credit Opinion by Fitch's Non-Rated Affiliates
Fitch Solutions, the sister Firm of Fitch Ratings, also provides opinions for risk management professionals. These opinions include market-implied ratings and scores for US financial institutions. Such opinions are formed by Fitch Solutions specialists. The scales used to express the opinion of Fitch Ratings' non-rating affiliates are not interchangeable with other scales used for Fitch Ratings' ratings or assessments, nor are they equivalent to such other scales.
Offensive Deadline repayment
The Money Issue has matured and has been de-rated.
Full redemption of the Money Issue
The tranche has matured, regardless of whether it was carried out according to the schedule or whether it was repaid ahead of schedule. Since redeemed, it is no longer rated.
Publication
initial public
announcement of the rating on the agency's website, although this is not necessarily the first rating assigned. This rating action takes place if a rating is published that was previously non-public.
Listing on Rating Watch
Credit enhancement mechanism review
The credit enhancement mechanism for the existing Security has been changed.
Fitch assigns ratings to investment process to provide Investors with an independent and professional assessment Works Managers for Asset Management in relation to a specific investment Process. These ratings are based on Information obtained from Asset Management Companies and other public sources that Fitch believes to be reliable. The analysis carried out to assign a rating includes a review, but not Audit Firms in the following four categories:
And organizational structure
Securities Portfolio Management
Investment Risk Management
Technological systems and operating environment
Ratings are assigned on a scale from "IP1" to "IP5", where "IP1" is the highest rating. Ratings may be supplemented with a "+" or "-" sign to indicate relative position within the main rating categories. Such signs do not supplement the ratings of the "IP1" and "IP5" levels. Fitch may upgrade, downgrade or withdraw an Investment Process rating or place such rating under Rating Watch at any time based on Information obtained from monitoring the Managers and other reliable sources.
a long history of activity, including extensive experience in the relevant investment Process;
Management and investment professionals with exceptional experience and motivation, very low or no turnover;
modern organizational structure and segregation of duties among investment professionals;
highly stable decision making with a high degree of confidence and extensive experience;
a highly formalized, transparent and clear investment strategy that is consistently implemented and has strong input parameters;
fully integrated and flexible IT systems that provide the highest level of support for investment professionals in areas such as portfolio monitoring, decision making, preparation and execution of transactions, administrative Work;
highly developed procedures for monitoring and controlling investment Risks.
a fairly long history of activity, including significant experience in the relevant investment Process;
Management and investment professionals with very high experience and motivation, low staff turnover;
very good organizational structure and segregation of duties among investment professionals;
a largely stable decision-making process with a high degree of confidence and experience;
a highly formalized, transparent and clear investment strategy that is consistently implemented and has strong input parameters;
well-integrated and flexible IT systems that provide a very good level of support to investment professionals in areas such as portfolio monitoring, decision making, preparation and execution of transactions, administrative work;
very well developed Company and procedures for monitoring and controlling investment Risks;
a significant history of activity, including acceptable experience in the relevant investment Process;
Management and investment specialists with experience and motivation, acceptable staff turnover;
good organizational structure and segregation of duties among investment professionals;
stable decision-making process with a certain degree of confidence and experience;
a formalized, transparent and clear investment strategy that is consistently implemented and has good input parameters;
integrated and flexible IT systems that provide a good level of support to investment professionals in areas such as portfolio monitoring, decision making, preparation and execution of transactions, administrative work;
well-developed Company and procedures for monitoring and controlling investment Risks.
An Investment Process with this rating has acceptable investment management, with some caveats that relate to concerns about one or more of the rating factors. These investment Processes are characterized by most of the following criteria:
a sufficient history of activity, including moderate experience in the relevant investment Process;
Management and investment professionals with moderate experience, some turnover;
acceptable organizational structure and segregation of duties among investment professionals;
fairly stable decision-making process with some degree of certainty;
the basic level of formalization of the investment strategy;
an acceptable IT environment that provides a minimum level of support to investment professionals in areas such as portfolio monitoring, decision making, preparation and execution of transactions, administrative work;
the basic level of the Company and procedures for monitoring investment Risks and control over such Risks.
An Investment Process with this rating does not meet even the minimum industry standards. Fitch may raise concerns about several of the following: very little history and accumulated Statistical Data, little experience, high employee turnover, lack of resources, inadequate IT systems and operating systems, inconsistent decision-making process, insufficient investment discipline, procedures control and transparency.
Asset Management Ratings and Investment Process Ratings are not comparable due to their different scope and purpose. These ratings are meant to provide different ratings. Asset Management Ratings aim to assess the organizational and operational characteristics of the Firm as a whole, while Investment Process Ratings are based on sub-group analysis and evaluate the quality of a particular investment Process. In other words, the Managers' ratings are not an average of the Investment Process ratings of those companies and should not be considered as such.
Sources
Wikipedia - The Free Encyclopedia, WikiPedia
fitchratings.com - Fitch Ratings website
banki.ru - Information portal
Banking Encyclopedia - Fitch Ratings ist neben Moody's und Standard Poor's eine der bedeutendsten Ratingagenturen. Fitch Ratings unterhält Firmensitze in New York and London. Die Ratingagegentur ist an 49 Standorten präsent; in Deutschland ist sie in Frankfurt am Main… … Deutsch Wikipedia
Fitch Group- Fitch Ratings is an international corporation known mainly as a rating agency. The main task is to provide the world credit markets with independent and forward-looking assessments of creditworthiness, analytical ... ... Wikipedia
Fitch- USA Fitch Ratings, a subsidiary of Fimalac SA (a French international business support services group), is a rating agency that ranks the credit worthiness of borrowers by rating their debt or other securities using a standardized ratings scale.… … Law dictionary
