Fitch Updates Country Ceiling Criteria; No Rating Impact

Thu Aug 28, 2014 4:05am EDT

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Country Ceilings here LONDON, August 28 (Fitch) Fitch Ratings has updated its Country Ceiling Criteria. The update contains no substantive changes and will have no impact on existing Country Ceilings. Country Ceilings are not ratings but represent the maximum cap for the foreign currency rating of issuers and transactions based in a particular country. They reflect our judgement of the risk of capital and exchange controls being imposed by a sovereign. Fitch's approach to Country Ceilings continues to be driven by an analysis of the institutional constraints on imposing or tightening controls, the degree of trade and financial integration with the rest of the world, which may increase the cost of imposing controls, and aspects of the macro policy environment, in particular the exchange rate regime and susceptibility to high inflation, which may cause governments to impose or tighten controls in order to preserve exchange rate and inflation stability. The principal amendment to the existing Country Ceiling Criteria is the inclusion of a section examining the performance of the criteria since their introduction in 2004. Our conclusion is that taking into account the change introduced last year, when the common 'AAA' eurozone Country Ceiling was replaced by a maximum six-notch uplift over the sovereign foreign currency Issuer Default Rating (FC IDR) for eurozone members, experience since 2004 is broadly consistent with the existing criteria. Apart from currency unions like the eurozone, Country Ceilings are notched up by between zero and three notches from the sovereign FC IDR. The criteria report titled 'Country Ceilings' is available at www.fitchratings.com and replaces the report of the same name dated 9 August 2013. Contact: Richard Fox Senior Director +44 20 3530 1444 Fitch Ratings Limited 30 North Colonnade London E14 5GN Douglas Renwick Senior Director +44 20 3530 1045 Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria and Related Research: Sovereign Rating Criteria here Fitch Ratings Sovereign 2013 Transition and Default Study here The Future of the Eurozone: Alternative Scenarios here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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