u.s. money fund exposure to european
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8/4/2019 U.S. Money Fund Exposure to European
1/5
Research Highlights
Samplebasedon10largestU.S.primeMMFs,currentlyrepresenting$755billion(i.e.45%)of$1.66trillionintotalU.S.primeMMFassets.
Recentbankexposuretrends(%oftotalMMFassets)Figure1:
Europe:50.2%(stable)
France:14.8%(increasing)
Italy:0.8%(declining)
MMFexposurestoindividualbanks(%totalMMFassets)Figure2:
1. DeutscheBank:4.5%
2. BNPParibas:4.1%
3. Rabobank:3.8%
BanksuseofMMFfunding(%ofinstitutionsdepositsandshort-termliabilities)Figure3:
4. Rabobank:6.7%
5. Westpac:6.2%
6. Natixis:5.7%
U.S. Money Fund Exposure to EuropeanBanks Remains Signifcant
Macro Credit Research June 21, 201
www.ftchratings.com
Analysts
Macro Credit ResearchRobert J. Grossman+1212908-0535robert.grossman@fitchratings.com
Kevin DAlbert+1212908-0823kevin.dalbert@fitchratings.com
Martin Hansen+1212908-9190martin.hansen@fitchratings.com
Fund and Asset Manager Group
Viktoria Baklanova
+1212908-9162viktoria.baklanova@fitchratings.com
U.S. Money Fund Exposure to EuropeanBanks: Recent Developments,
March 30, 2011
U.S. Money Market Funds: RecentTrends in Exposure to European Banks,
Dec. 10, 2010
Related Research
SummaryU.S.primemoneymarketfunds(MMFs)continuetohavesizableexposurestoEuropeanfinancial
institutions,arelationshipwhichcouldaffectbothsectors.MMFsareapotentialchannelfo
eurozonecreditmarketvolatility.ForEuropeanbanks,alossorreductioninMMFfundingcoul
createnegativeperceptionsaboutaninstitutionsfinancialstrength.
ThisreportanalyzesMMFportfoliotrendsthroughMay31,2011,andupdatesFitchRatings
priorstudy,whichwasbasedonresultsfromtheendofFebruary.Fitchsanalysisisbasedon
asampleofthe10largestprimeMMFs,representing45%ofthetotalprimefunduniverse,
andfocusesontheiraggregateexposuretobankscertificatesofdeposit(CDs),commercial
paper (CP),asset-backedCP (ABCP),repurchaseagreements(repos),andother short-term
notesanddeposits.
Over the past threemonths, MMF exposure toEuropeanbanks hasbeenstable, atroughly
50%oftotalMMFassets,inclusiveoftimedepositsandnotes(seenoteonpage3).Aggregate
exposuretoFrench,German,andU.K.banksremainedconstantat30%oftotalMMFassets
althoughtherewassomevariationintrendsacrosscountries.Germanbankexposuredecreased
from8.2%to6.3%ofMMFassets,whileFrenchbankexposurerosefrom13.3%to14.8%overthesameperiod.U.K.bankexposurealsoincreased,from8.6%to9.7%ofMMFasset
(seeFigure1).
Sincepeakingin2009,MMFexposurestoItalianandSpanishbankshavecontinuedtodeclin
steadily. Italian bankexposureroughly halvedsince February, falling from1.5% to 0.8%o
totalMMFassets.Spanishbanksremainedsteadyat0.2%oftotalassets,asMMFshadalread
reducedthisexposuresignificantlyin2010.
The15largestglobalbankexposures,asagroup,comprisemorethan40%oftotalMMFasset
(seeFigure2).Ofthetop15,thereare10Europeaninstitutionsthatinaggregateaccountfor
morethan30%oftotalMMFassets.ThefourFrenchbanksamongthetop15(BNPParibas
CreditAgricole,SocieteGenerale,andNatixis)representroughly12%oftotalMMFassets.
0
5
10
15
20
2 H0 6 1H07 2 H0 7 1 H0 8 2H08 1H09 2 H0 9 1H10 2H10 Fe b- 11 Ma y- 11
France Germany ItalyandSpain UnitedKingdom
(%)
Figure 1: Exposure to Banks in "Core" Countries Remains Elevated(%ofTotalMMFAssetsUnderManagement)
Sources:FitchRatings,MMFpublicWebsites,SECfilings.
mailto:robert.grossman@fitchratings.commailto:martin.hansen@fitchratings.comhttp://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616105http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616105http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616105http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=585245http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=585245http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=585245http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=585245http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=585245http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=585245http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616105http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616105http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616105mailto:martin.hansen@fitchratings.commailto:robert.grossman@fitchratings.com -
8/4/2019 U.S. Money Fund Exposure to European
2/52 June 21, 201
U.S. Money Fund Exposure to European Banks Remains Signifcant
TheotherdimensionoftherelationshipbetweenbanksandMMFs
is MMFs asa sourceof short-term bank funding.Of the top 15
MMFexposurestoglobalbanks,MMFfundingaccountsforatleast
3% of total deposits, money market, and short-term funding for
seveninstitutions.Thisfigurewouldbehigherifincludingthefull
universeofprimeMMFsbeyondthetenlargestfunds,aswellas
otherprivatelymanagedliquiditypoolsandEuropeanU.S.dollar
denominatedmoneyfundswithsimilarinvestmentprofiles.While
theoverallfundingrelianceonMMFsmightnotappearsignificant,
the potential withdrawal of MMF funding could create negative
perceptionsaboutaninstitutionsfinancialcondition.
A Regulatory Conundrum
Systemicinterconnectednesscomplicatesthemanychallengesthatregulatorsfaceintheireffortstoenhancethesafetyandstabilityof
thepost-crisisfinancialsector.Forexample,newBaselIIIliquidityratioscreateincentivesforbankstoreducetheirrelianceonshort-
termliabilitiesbyassumingthatunsecuredfundingoflessthan30daysrunsoffcompletelyinastressscenario.Effortsbybanking
regulatorstolengthenthedurationofbanksliabilitiescreateanapparenttensionwithsecuritiesregulatorsobjectivestoreducethe
maturityprofileofMMFsinvestmentportfolios.Morespecifically,Rule2a-7revisionsreducetheaveragematurityofMMFinvestments
from90daysto60daysandintroduceminimumdailyandweeklyliquidityrequirements,creatingdisincentivesforMMFstoinvestin
longer-datedbankCDandCPissuance.
Figure 2: Largest MMF Exposures Financial Institutions(%ofTotalMMFAssetsUnderManagement,AsofMay2011)
Issuer/Counterparty CD CP Repo
Other
(e.g.
Notes) Total
Deutsche Bank 2.1 0.3 2.2 0.0 4.5
BNP Paribas 3.2 0.2 0.6 0.0 4.1
Rabobank 3.1 0.7 0.0 0.0 3.8
Barclays 0.8 0.3 1.9 0.0 3.0
Credit Agricole 2.4 0.1 0.1 0.4 3.0
Westpac 0.5 1.7 0.0 0.8 3.0Societe Generale 1.2 0.9 0.3 0.6 3.0
ING 2.0 0.5 0.4 0.0 2.9
RoyalBankofCanada 1.4 0.4 0.1 0.6 2.5
BankofNovaScotia 2.3 0.1 0.0 0.0 2.4
Royal Bank of Scotland 1.4 0.1 0.9 0.0 2.4
JPMorganChase 0.0 0.3 1.4 0.6 2.3
NationalAustraliaBank 2.3 0.0 0.0 0.0 2.3
Natixis 1.2 0.8 0.0 0.0 2.1
UBS 1.3 0.0 0.7 0.0 2.0
Note:Totalsmayvaryduetorounding.Europeanbanksareboldedabove.Source:FitchRatings,MMFpublicWebsites,SEClings.
Figure 3: Bank Reliance on MMF Funding(AsofMay2011)
Issuer/Counterparty
CD, CP, Repo, Other/
Financial Institution's Deposits
and Short-Term Liabilities (%)a
Rabobank 6.7
Westpac 6.2
Natixis 5.7
NationalAustraliaBank 4.2
Deutsche Bank 3.8
BankofNovaScotia 3.8
RoyalBankofCanada 3.3
Societe Generale 2.9
BNP Paribas 2.6
ING 2.5
UBS 2.3
Barclays 2.2
Credit Agricole 1.9
Royal Bank of Scotland 1.5
JPMorganChase 1.3
aTotaldeposits,moneymarket,andshort-termfunding.Note:Europeanbanksareboldedabove.Source:FitchRatings,MMFpublicWebsites,SEClings.
Drivers o U.S. MMF Exposure to European Banks
ThereareseveralmacrofactorswhichhelpexplainthesignificantexposureofU.S.MMFstoEuropeanbankissuers.
> EuropeanBanksNeedforDollarFunding:Dollar-denominatedassetsofEuropeanbankshavegrownrapidlyoverthepastdecade,
fromapproximately$2trillionin1999tomorethan$8trillionin2008.SeeMarch2009BankforInternationalSettlements
QuarterlyReviewU.S.DollarMoneyMarketFundsandNon-U.S.Banks).U.S.primemoneyfundsprovideanaturalsourcefor
short-termdollarfinancing.
> NarrowingInvestmentOpportunitiesforMMFs:Duringthefinancialcrisis,industryconsolidationandthefailureof several
financialinstitutionsreducedtheglobaluniverseofpotentialMMFinvestmenttargets,particularlyintheU.S.(e.g.BearStearns,
Countrywide,LehmanBrothers,Wachovia,andWashingtonMutual).Additionally,sincethebeginningof2007,ABCPoutstanding
hasdroppedfrom$1.2trillionto$380billion.Finally,short-termTreasuryyieldsarehoveringnear0%.EuropeanbankCD
exposurehashelpedtofilltheresultingvoid.
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8/4/2019 U.S. Money Fund Exposure to European
3/5 June 21, 2011
Fitch Ratings
Background on Fitch Study
> ThisresearchstudyisintendedtoprovidemarketparticipantswithinformationonMMFexposurestoEuropeanbanks,anddoes
notcommentspecificallyonFitch-ratedMMFs.Assuchthereportdoesnotatpresenthaveanyratingimplications.
> Forthemostrecentobservationperiod(i.e.May31,2011),theMMFsinFitchssamplerepresentroughly$755billion,or45%of
theInvestmentCompanyInstitutesestimateofapproximately$1.66trillionintotalU.S.primeMMFassetsundermanagement.
> Thesamplesetisbasedonpublicfilingsfromthe10largestprimeinstitutionalandretailMMFs,asmeasuredbyassetsunder
management,asofeachobservationperiod.Thus,insomecasestheMMFssampleddifferslightlyfromperiodtoperiod.Becausethisanalysisisbasedonaggregateddataforthe10MMFssampled,itdoesnotcapturepotentialdifferencesinexposureprofiles
acrossindividualfunds.
> MMFexposuretobanksencompassesthefollowinginstrumenttypes:CDs,CP,ABCP,repos,andcorporatenotes.Bankexposure
dataforforeignsubsidiariesisgenerallyconsolidatedwithinthebankinggroupshomejurisdiction.Bankexposuredataincludes
state-controlledfinancialinstitutions,whereapplicable.
> Inordertomaintaindataintegrity,Fitchperiodicallyreviewsrawexposure-levelholdingsdataand,ifwarranted,mayreclassify
specificexposures(e.g.byassettype,industrysector,counterparty,orcountry).Reclassificationand/orrevisionstothedatasetcan
resultingenerallyminorchangestothehistoricaltimeseriesofMMFexposures.
> Becauseofboththeinclusionofnewinstrumenttypes(e.g.timedepositsandcorporatenotes)andexposurereclassifications,
historicaldatainsomeinstanceschangedslightly,relativetopriorupdatesofthisstudy.Forexample,Fitchspriorstudy(published
inMarch2011)providedatotalEuropeanbankexposurefigureof44.3%formonth-endFebruary.Inthiscurrentstudy,thecorrespondinghistoricalfigureformonth-endFebruaryis49.6%,a5.3%increaseaccountedforbyreclassifications(0.9%)and
theinclusionofotherinstrumenttypes(4.4%).
> Theperiodofobservationcoversninedistinctsemiannualperiods,month-endFebruary2011,andmonth-endMay2011.Note
thatfinancialreportingdatesoftenvaryacrossMMFs.Fitchthereforehasappliedadegreeofjudgmentincategorizingindividual
MMFfilingsintotheappropriatesemiannualbucket.
> MostofthehistoricaldataincludedinthisstudyiscomparabletoareportpublishedbyFitchinDecember2010.(SeeU.S.
MoneyMarketFunds:RecentTrendsinExposuretoEuropeanBanks.)However,second-half2010dataintheDecember2010
reportwascompiledasofOctober2010,andreflectsaninterimobservationforthatperiod.Thesecond-half2010dataprovided
inthisreporthasbeenupdatedandrevisedtoreflectMMFholdingsasofNovember/December2010,resultinginslightdifferences
withthesecond-half2010figurespublishedintheDecember2010report.
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U.S. Money Fund Exposure to European Banks Remains Signifcant
Figure 4: MMF Exposure to Bank CDs, CP, Repos, and Other By Country(As a % of Total MMF Assets Under Management)
BE FR DE IE IT NL Nordic PT ES CH UK
Europe
(All) AT CA JP US
2H06 1.4 10.0 10.1 0.4 2.4 4.1 2.6 0.0 0.7 4.0 12.8 48.7 1.6 3.0 2.7 24.6
CD 0.5 6.2 3.4 0.3 0.9 1.0 0.9 0.0 0.1 1.7 5.5 20.4 0.1 2.2 2.6 1.3
CP 0.8 1.4 3.4 0.2 0.3 2.6 1.1 0.0 0.3 0.5 3.3 14.1 1.1 0.4 0.0 7.7
Repo 0.0 0.1 1.2 0.0 0.0 0.0 0.0 0.0 0.0 1.3 1.2 3.8 0.0 0.0 0.0 5.8
Other 0.1 2.4 2.0 0.0 1.2 0.4 0.6 0.0 0.3 0.5 2.8 10.4 0.4 0.3 0.1 9.71H07 2.1 10.4 9.8 0.4 1.9 4.3 2.9 0.0 0.9 4.6 13.0 50.5 2.1 3.0 2.3 26.6
CD 1.0 6.1 3.6 0.2 0.5 1.7 0.7 0.0 0.2 2.8 5.1 22.0 0.4 2.2 2.0 1.4
CP 0.7 1.1 2.5 0.1 0.2 2.0 1.2 0.0 0.1 1.1 3.1 12.2 1.2 0.3 0.1 7.4
Repo 0.0 0.1 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.6 1.8 3.7 0.0 0.0 0.0 8.2
Other 0.4 3.0 2.4 0.1 1.2 0.6 1.0 0.0 0.6 0.1 3.1 12.5 0.5 0.6 0.2 9.6
2H07 2.5 8.6 8.4 0.8 1.7 4.8 3.3 0.1 1.9 4.9 13.4 50.5 2.0 3.7 1.8 26.7
CD 1.2 4.8 2.1 0.3 0.4 1.3 1.4 0.0 1.0 2.5 6.2 21.2 0.3 2.5 1.6 2.1
CP 1.2 1.3 1.9 0.4 0.3 2.9 1.3 0.1 0.3 0.6 4.2 14.3 1.0 0.5 0.1 9.2
Repo 0.0 0.4 2.7 0.0 0.0 0.0 0.0 0.0 0.0 1.7 1.0 5.8 0.0 0.0 0.0 8.0
Other 0.1 2.1 1.7 0.1 1.0 0.7 0.7 0.0 0.6 0.1 2.0 9.2 0.7 0.7 0.0 7.3
1H08 2.6 10.2 7.1 1.6 3.2 3.8 3.7 0.0 2.6 3.4 11.0 49.3 4.0 2.9 1.2 18.6
CD 1.1 6.9 2.1 0.8 1.9 1.5 0.9 0.0 2.1 1.4 5.7 24.4 1.0 1.8 1.0 1.3
CP 1.0 1.2 1.1 0.7 0.4 1.6 1.5 0.0 0.1 0.4 2.6 10.8 1.6 0.3 0.1 6.7
Repo 0.0 0.2 2.9 0.0 0.0 0.0 0.0 0.0 0.0 1.2 0.9 5.2 0.0 0.1 0.0 4.5
Other 0.5 1.9 1.0 0.1 0.9 0.6 1.3 0.0 0.4 0.4 1.6 8.9 1.4 0.7 0.1 6.1
2H08 0.5 12.7 3.5 0.5 2.7 5.1 3.7 0.0 3.3 2.9 10.4 45.4 4.2 6.2 0.9 15.8
CD 0.1 7.7 0.9 0.4 2.3 2.5 1.3 0.0 2.6 1.2 5.5 24.5 1.9 4.2 0.5 1.6
CP 0.2 2.1 0.9 0.1 0.4 2.2 1.6 0.0 0.6 0.6 2.9 11.7 1.1 1.0 0.2 7.8
Repo 0.0 0.6 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.8 1.1 3.0 0.0 0.2 0.0 2.3
Other 0.2 2.4 1.1 0.0 0.0 0.4 0.7 0.0 0.1 0.3 0.9 6.2 1.2 0.9 0.1 4.0
1H09 1.0 16.2 4.9 0.1 3.0 5.3 4.7 0.5 3.2 2.4 10.9 52.3 4.0 5.9 3.5 8.4
CD 0.6 11.4 2.2 0.0 2.4 3.7 2.1 0.5 2.1 1.2 6.2 32.4 1.8 4.8 3.4 1.5
CP 0.0 2.1 1.0 0.0 0.6 1.3 1.7 0.0 0.9 0.5 2.0 10.2 1.3 0.4 0.1 3.8
Repo 0.0 0.8 1.1 0.0 0.0 0.0 0.0 0.0 0.0 0.3 1.7 4.0 0.0 0.2 0.0 2.0
Other 0.4 1.9 0.6 0.0 0.0 0.3 0.9 0.0 0.2 0.3 1.0 5.6 0.9 0.5 0.0 1.0
2H09 1.8 16.4 6.0 0.4 3.2 6.1 5.3 0.3 2.9 1.5 11.2 55.2 6.2 6.0 4.7 9.2
CD 1.0 11.7 2.7 0.4 2.4 4.8 3.1 0.2 2.0 0.6 6.8 35.8 3.0 5.0 4.5 0.6
CP 0.3 2.7 1.7 0.0 0.8 0.8 1.4 0.1 0.9 0.2 1.3 10.2 2.2 0.6 0.1 2.0
Repo 0.0 0.3 1.2 0.0 0.0 0.1 0.0 0.0 0.0 0.5 2.6 4.8 0.0 0.1 0.0 4.6
Other 0.5 1.8 0.4 0.0 0.0 0.3 0.8 0.0 0.0 0.1 0.5 4.4 1.0 0.4 0.0 2.0
1H10 1.3 12.7 7.8 0.0 1.9 5.7 5.8 0.0 1.8 1.7 9.8 48.5 6.1 6.9 4.0 9.8
CD 0.7 9.1 2.3 0.0 1.0 4.1 2.5 0.0 1.2 0.4 5.8 27.1 2.3 5.4 3.7 0.9
CP 0.3 1.7 2.3 0.0 0.9 1.0 1.9 0.0 0.5 0.5 1.1 10.3 2.3 0.2 0.3 1.9
Repo 0.0 0.3 2.0 0.0 0.0 0.2 0.0 0.0 0.0 0.8 2.5 5.9 0.0 0.5 0.0 5.0
Other 0.3 1.6 1.2 0.0 0.0 0.3 1.4 0.0 0.1 0.0 0.3 5.2 1.5 0.9 0.0 2.0
2H10 1.2 14.5 7.8 0.0 1.3 6.2 5.0 0.0 0.6 3.1 9.8 49.6 7.2 7.6 5.5 9.4
CD 0.5 10.4 2.4 0.0 0.4 4.4 3.2 0.0 0.3 1.4 4.5 27.5 3.5 5.8 5.3 0.5
CP 0.3 2.2 2.1 0.0 0.9 1.1 1.6 0.0 0.2 0.3 1.9 10.7 2.6 0.4 0.2 1.2
Repo 0.0 0.6 2.5 0.0 0.0 05. 0.0 0.0 0.0 1.1 2.9 7.7 0.0 0.2 0.0 5.0
Other 0.3 1.4 0.9 0.0 0.0 0.1 0.2 0.0 0.1 0.3 0.5 3.7 1.0 1.1 0.0 2.6
Feb-11 1.0 13.3 8.2 0.0 1.5 6.3 5.9 0.0 0.2 4.2 8.6 49.6 7.0 8.0 4.9 8.0
CD 0.3 8.3 2.8 0.0 0.1 4.4 2.9 0.0 0.1 2.0 3.7 24.7 2.9 6.0 4.6 0.4
CP 0.2 2.9 2.0 0.0 1.2 1.3 1.8 0.0 0.1 0.8 1.7 12.0 3.2 0.5 0.2 1.4
Repo 0.0 0.9 2.7 0.0 0.0 0.5 0.0 0.0 0.0 1.2 3.2 8.5 0.0 0.2 0.1 4.0
Other 0.4 1.2 0.7 0.0 0.3 0.1 1.1 0.0 0.0 0.3 0.1 4.4 0.9 1.3 0.0 2.2
May-11 0.6 14.8 6.3 0.0 0.8 7.2 6.2 0.0 0.2 3.9 9.7 50.2 7.7 8.2 4.8 7.5
CD 0.2 9.2 2.4 0.0 0.1 5.2 3.5 0.0 0.1 2.1 5.3 28.3 3.5 6.9 4.6 0.1CP 0.1 3.7 1.2 0.0 0.6 1.5 1.9 0.0 0.0 0.4 1.3 10.7 3.2 0.5 0.0 1.1
Repo 0.0 1.0 2.2 0.0 0.0 0.4 0.1 0.0 0.0 1.4 3.1 8.2 0.0 0.2 0.2 4.4
Other 0.3 0.9 0.5 0.0 0.1 0.0 0.8 0.0 0.0 0.0 0.1 3.0 1.0 0.7 0.0 2.0
BEBelgium.FRFrance.DEGermany.IEIreland.ITItaly.NLNetherlands.PTPortugal.ESSpain.CHSwitzerland.UKUnitedKingdom.ATAustralia.CACanada.JPJapan.USUnitedStates.Source:FitchRatings,MMFpublicWebsites,andSEClings.
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8/4/2019 U.S. Money Fund Exposure to European
5/5 June 21, 2011
Fitch Ratings
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Copyright2011byFitch,Inc.,FitchRatingsLtd.anditssubsidiaries.OneStateStreetPlaza,NY,NY10004.Telephone:1-800-753-4824,(212)908-0500.Fax:(212)480-4435.Reproductionorretransmissioninwholeorinpartisprohibitedexceptbypermission.Allrightsreserved.Inissuingandmaintainingitsratings,FitchreliesonfactualinformationitreceivesfromissuersandunderwritersandfromothersourcesFitchbelievestobecredible.Fitchconductsareasonableinvestigationofthefactualinformationrelieduponbyitinaccordancewithitsratingsmethodology,andobtainsreasonablevericationofthatinformationfromindependentsources,totheextensuchsourcesareavailableforagivensecurityorinagivenjurisdiction.ThemannerofFitchsfactualinvestigationandthescopeofthethird-partyvericationitobtainswillvarydependingonthenatureoftheratedsecurityanditsissuer,therequirementsandpracticesinthejurisdictioninwhichtheratedsecurityisofferedandsoldand/ortheissuerislocated,theavailabilityandnatureofrelevantpublicinformation,accesstothemanagementoftheissueranditsadvisers,theavailabilityofpre-existingthird-partyvericationssuchasauditreports,agreed-uponproceduresletters,appraisals,actuarialreports,engineeringreports,legalopinionsandotherreportsprovidedbythirdparties,theavailabilityofindependentandcompetentthird-partyvericationsourceswithrespecttotheparticularsecurityorintheparticularjurisdictionoftheissuer,andavarietyofotherfactors.UsersofFitchsratingsshouldunderstandthatneitheranenhancedfactualinvestigationnoranythird-partyvericationcanensurethatalloftheinforma-tionFitchreliesoninconnectionwitharatingwillbeaccurateandcomplete.Ultimately,theissueranditsadvisersareresponsiblefortheaccuracyoftheinformationtheyprovidetoFitchandtothemarketinofferingdocumentsandotherreports.InissuingitsratingsFitchmustrelyontheworkofexperts,includingindependentauditorswithrespecttonancialstatementsandattorneyswithrespecttolegalandtaxmatters.Further,ratingsareinherentlyforward-lookingandembodyassumptionsandpredictions
aboutfutureeventsthatbytheirnaturecannotbeveriedasfacts.Asaresult,despiteanyvericationofcurrentfacts,ratingscanbeaffectedbyfutureeventsorconditionsthatwerenotanticipatedatthetimearatingwasissuedorafrmed.
Theinformationinthisreportisprovidedasiswithoutanyrepresentationorwarrantyofanykind.AFitchratingisanopinionastothecreditworthinessofasecurity.Thisopinionis basedonestablishedcriteriaandmethodologiesthatFitchiscontinuouslyevaluatingandupdating.Therefore,ratingsarethecollectiveworkproductofFitchandnoindividual,orgroupofindividuals,issolelyresponsibleforarating.Theratingdoesnotaddresstheriskoflossduetorisksotherthancreditrisk,unlesssuchriskisspecicallymentioned.Fitchisnotengagedintheofferorsaleofanysecurity.AllFitchreportshavesharedauthorship.IndividualsidentiedinaFitchreportwereinvolvedin,butarenotsolelyresponsiblefor,theopinionsstatedtherein.Theindividualsarenamedforcontactpurposesonly.AreportprovidingaFitchratingisneitheraprospec-tusnorasubstitutefortheinformationassembled,veriedandpresentedtoinvestorsbytheissueranditsagentsinconnectionwiththesaleofthesecurities.RatingsmaybechangedorwithdrawnatanytimeforanyreasoninthesolediscretionofFitch.Fitchdoesnotprovideinvestmentadviceofanysort.Ratingsarenotarecommendatiotobuy,sell,orholdanysecurity.Ratingsdonotcommentontheadequacyofmarketprice,thesuitabilityofanysecurityforaparticularinvestor,orthetax-exemptnatureortaxabilityofpaymentsmadeinrespecttoanysecurity.Fitchreceivesfeesfromissuers,insurers,guarantors,otherobligors,andunderwritersforratingsecurities.SuchfeesgenerallyvaryfromUS$1,000toUS$750,000(ortheapplicablecurrencyequivalent)perissue.Incertaincases,Fitchwillratealloranumberofissuesissuedbyaparticularissuer,orinsuredorguaranteedbyaparticularinsurerorguarantor,forasingleannualfee.SuchfeesareexpectedtovaryfromUS$10,000toUS$1,500,000(ortheapplicablecurrencyequivalent).Theassignment,publication,ordisseminationofaratingbyFitchshallnotconstituteaconsentbyFitchtouseitsnameasanexpertinconnectionwithanyregistrationstatementledundertheUnitedStatessecuritieslaws,theFinancialServicesandMarketsActof2000ofGreatBritain,orthesecuritieslawsofanyparticularjurisdiction.Duetotherelativeefciencyofelectronicpublishinganddistribution,Fitchresearchmaybeavailabletoelectronicsubscribersuptothreedaysearlierthantoprintsubscribers.
http://www.fitchratings.com/creditdesk/public/ratings_defintions/index.cfm?rd_file=intro#lmt_usagehttp://www.fitchratings.com/creditdesk/public/ratings_defintions/index.cfm?rd_file=intro#lmt_usage
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