OREANDA-NEWS. Fitch Ratings has clarified the application of its UK RMBS criteria during the ongoing consultation period.

On 22 September 2015 Fitch published an exposure draft detailing proposed revised criteria for estimating losses on UK residential mortgage pools mainly applicable for analysis of UK RMBS and covered bond transactions. The exposure draft reflects Fitch's latest credit thinking in relation to UK residential mortgage pools. The proposed criteria are subject to consultation and could change as a result of this process.

Fitch is today clarifying that new ratings assigned will continue to be based primarily on the existing criteria until the new criteria are finalised and published. However, during this period, the criteria assumptions outlined in the exposure draft will be used to assess sensitivities between the existing and exposure draft criteria assumptions when analysing new ratings. Rating committees may choose to depart from existing criteria and reflect rating results which take into account the results of this sensitivity analysis. Fitch will disclose the results of the existing criteria, the sensitivities performed and the influence on the final rating outcome or an explanation of the committee decision in its rating communications.