Fitch Launches Ratings Assessment Service For Strategic Transactions
Fitch Ratings has launched a Ratings Assessment Service for clients contemplating strategic transactions. As part of this service, Fitch will provide clients with a confidential opinion on how a transaction such as an acquisition, capital restructuring or off balance sheet financing would affect their credit rating. Clients will also be able to obtain information on how their ratings would change under a range of different scenarios – what would happen, for example, if they raised USD250 million of new debt instead of the planned USD200 million. Fitch will allocate conditional ratings to each scenario provided by the client via a confidential ratings letter. This letter will contain a definition of the scenario, an explanation of the rationale behind the conditional rating and the terms and conditions necessary for conversion to a final rating.