Industry Event
Fitch Ratings Subscription Finance Criteria Exposure Draft & Webinar
Fitch Ratings has published an exposure draft proposing new rating criteria for subscription facilities backed by capital commitments to private capital funds, and will be hosting a webinar to discuss the new methodology.
Key considerations:
- Quantitative analysis of subscription facilities is based on the credit quality and diversification of the LP pool, and modelled losses compared to the level of over-collateralization available to the facility
- Qualitative assessment considers the fund manager, the fund’s characteristics, and the facility’s structural terms
- Fitch may also cap subscription facility ratings in certain circumstances
- Rating framework applies globally to new ratings and their surveillance