OREANDA-NEWS. Fitch Ratings has published its latest Country-Specific Treatment of Recovery Ratings Criteria, which reflects an update to its analytical approach to determining soft country caps.

The country-specific treatment of recovery ratings criteria constrain the upward notching of issue ratings from Issuer Default Ratings to reflect recovery expectations for corporate finance entities based on the impact of country-specific factors.

The revised approach has resulted in a limited number of countries for which Fitch has ratings moving either up or down from one cap grouping to another. Fitch estimates that it will need to review issue ratings of no more than 10 publicly rated issuers and a smaller number of privately rated transactions. In addition, Fitch provides private credit opinion ratings to asset managers and we estimate that there will be an impact on fewer than 10 credit opinion rated issuers. Reviews may result in instrument ratings being upgraded or downgraded.