The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Fitch Launches Analytical Tools for EMEA and Asia-Pacific Corporates

Fitch Ratings has released tools designed to help investors better understand Fitch’s analytical approach, in particular the agency’s approach to computing credit metrics in IFRS jurisdictions, and its bespoke recovery analysis.

“These new tools are a continuation of EMEA Corporates’ Clear Thinking programme, which is designed to make Fitch’s ratings more transparent and useful to investors, issuers and their advisors,” says Alex Griffiths, Head of International Research in Fitch’s EMEA Corporate Group. “They complement the agency’s existing criteria, its Sector Credit Factors rating guidelines, and detailed issuer-level reports.”

The EMEA and Asia-Pacific Corporate Ratio Calculation tool allows users to calculate Fitch’s ratios. Along with clearer presentation of financial ratios, and the introduction of reconciliations of Fitch’s metrics to issuers’ published results in the new full rating report format, this gives more clarity than ever before.

The recovery ratings tool is based on the spreadsheet used by Fitch to perform bespoke recovery analysis. It leads the user through estimating enterprise value on default, and how this is apportioned between different classes of creditor to determine likely recoveries, and ultimately the notching of Fitch’s instrument ratings from the Issuer Default Rating.

Both tools can be found on Fitch’s main website or via Fitch’s Clear Thinking website, which also features an instructional video on Fitch’s approach to recovery ratings, a guide to Fitch’s corporate criteria, and a full listing of Fitch’s sector credit factors reports. The Clear Thinking site can be accessed here.

Related content

WEBINAR

Recorded Webinar: How to run effective client onboarding and KYC processes

Increasing cost, complexity and regulatory change continue to challenge firms implementing client onboarding and Know Your Customer (KYC) systems. With an effective strategy and a clearly defined pathway, it’s possible to gain a valuable competitive advantage whilst meeting those all-important compliance requirements. But how to get there? With a myriad of different options out there...

BLOG

ROC Takes Responsibility for Identifiers Designed to Track OTC Derivatives Transactions

Transparency of the OTC derivatives market takes a step forward tomorrow with the Financial Stability Board (FSB) confirming the Regulatory Oversight Committee (ROC) of the Global LEI System as the International Governance Body for the identifiers that will be used to track OTC derivatives transactions. Harmonisation of the identifiers should culminate towards the end of...

EVENT

Data Management Summit New York City

Now in its 10th year, the Data Management Summit (DMS) in NYC explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

Regulatory Data Handbook – Fifth Edition

In response to the popularity of the A-Team Regulatory Data Handbook, we have published a fifth edition outlining the essentials of regulations that are likely to have an impact on data and data management at your organisation. New to this edition is a section on RegTech, covering drivers behind the development of innovative regulatory technology,...