(Repeat for additional subscribers)
June 10 (The following statement was released by the rating agency)
Fitch Ratings has updated its EMEA CMBS and Loan Rating criteria following publication of an exposure draft on 14 April 2014. The update does not affect any existing ratings.
The exposure draft requested feedback on the following areas (i) a widening of the criteria scope to include loan ratings, (ii) enhanced disclosure on the setting of key real estate assumptions and guidance ranges for those key assumptions, and (iii) greater insight into Fitch's analysis of contracted income.
The criteria update is consistent with proposals of the exposure draft with the following exceptions. Firstly, in addition to the exposure draft proposals the criteria will also apply a rating cap to certain CMBS transactions in jurisdictions (eg Italy) where judicial recovery timing is uncertain. Secondly, the criteria report has been extended with respect to the loan rating methodology to allow for greater credit for loans supported by strong covenant package In jurisdictions (eg UK) where the power to enforce such covenants is generally recognised by the courts.
The criteria replace the report tilted "EMEA CMBS Rating Criteria" published on 3 April 2013.
Fitch would like to thank market participants for their feedback on this criteria proposal. During the feedback period Fitch received two written responses marked as confidential by the respondent. There were no other written responses.
The report "EMEA CMBS and Loan Rating Criteria" is available in the below link
Link to Fitch Ratings' Report: Rating Criteria for Commercial Mortgage-Backed Securities (CMBS) and Loans in EMEA