TEXT-Fitch updates Multi-Issuer Cedulas Hipotecarias rtg criteria
(The following statement was released by the rating agency)
July 26 - Fitch Ratings has updated rating criteria for Multi-Issuer Cedulas Hipotecarias (MICH). The update will have no impact on the existing ratings of MICH.
The criteria have been completely re-written to improve clarity.
The two most significant changes are that Fitch will apply haircuts to overcollateralisation of CH issuers as a function of their short-term rating to address the cliff effect at the former 'F2' threshold. The agency has also updated the formula for estimating the present value of the mortgage-covered pool under stress to account for higher rating stresses.
Fitch has also clearly indicated the minimum data needed to maintain the ratings and the frequency of updates. The report contains links to the Excel template files that should be used for reporting monthly and quarterly data sets.
The report is available at www.fitchratings.com or by clicking on the link below.
Link to Fitch Ratings' Report: Rating Criteria for Multi-Issuer Cedulas Hipotecarias
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