Fitch Ratings, based in New York and Chicago, has released an updated criteria report for rating oil-vessel-backed financing transactions, replacing the previous version from November 10, 2021, according to an article published on Fitch ratings website.
Focus On Offshore Vessels
The report delineates Fitch’s criteria for rating transactions supported by long-term charter and services agreements linked to offshore vessels used in the production stage. Notably, the covered asset types include floating-production storage and offloading units and shuttle tankers.
Key Changes In Rating Criteria
The revised Oil-Vessel Backed Financing Rating criteria feature text amendments and clarifications related to the terminology of rating case scenarios. Despite these adjustments, Fitch emphasizes the absence of substantial changes in its overall approach, anticipating no impact on existing ratings.
Limitations And Disclaimers
Acknowledging certain limitations and disclaimers, Fitch Ratings urges readers to refer to the provided links for a detailed understanding. These include explanations of rating definitions, criteria, methodologies, and the code of conduct, ensuring transparency in Fitch’s operations.
Issuer And Underwriter Collaboration
In its rating processes, Fitch relies on factual information obtained from issuers, underwriters, and other credible sources. The report emphasizes the importance of issuer and underwriter responsibility for the accuracy of information provided to Fitch.
Continuous Evaluation And Updating
Fitch underscores its commitment to the ongoing evaluation and updating of criteria and methodologies. This dynamic approach aims to ensure the relevance and accuracy of Fitch’s assessments, adapting to changes in the financial landscape.
NRSRO Registration
As a Nationally Recognized Statistical Rating Organization (NRSRO), Fitch Ratings is registered with the U.S. Securities and Exchange Commission. While some credit rating subsidiaries are listed on Form NRSRO, the report clarifies that non-NRSRO personnel may contribute to determining credit ratings.
Global Presence And Regulatory Compliance
The report provides links to regulatory information, including Fitch’s presence in Australia, New Zealand, Taiwan, and South Korea. Fitch Ratings, Inc. adheres to regulatory requirements and engages in providing credit ratings within the defined scope of its license.
Conclusion
Fitch Ratings emphasizes that its ratings and reports are collective work products, with no individual or group solely responsible.
The report concludes with a disclaimer, clarifying that Fitch’s opinions and reports are based on established criteria and methodologies continuously under evaluation and updating. Ratings may be subject to change or withdrawal at Fitch’s discretion.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: fitch rating
