Fitch has published a Non-Bank Financial Institutions Criteria Exposure Draft. In this document, Fitch proposes a number of changes to its criteria used to assign ratings to non-bank financial institutions and their financial obligations. The proposed changes, outlined in a press release and on page two of the exposure draft, are designed to enhance the application and clarity of the criteria. We do not expect the proposed criteria changes to have material rating implications.

Key proposed changes

We have made a number of changes including:

• Introduction of weightings assigned to Fitch’s key rating drivers
• Enhancements to the way the agency assesses an issuer’s operating environment
• Introduction of quantitative benchmarks for the Business Profile assessment
• The addition of more granular financial benchmarks
• Refinement of existing Funding, Liquidity and Coverage benchmarks
• Additional guidance has also been provided for Investment Companies, notching up for support, and the rating of secured debt instruments

Date: March 08, 2023

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