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Fitch Quantitative Financial Research (QFR)

In Rememberance: World Trade Center (WTC)

Recovery Ratings: Exposing the Components of Credit Risk

by Roger Merritt of Fitch Ratings,
et.al.

July 26, 2005

Summary: Fitch is launching its new recovery ratings (‘RR' ratings) and issuer default ratings (IDRs), following a commentary period that involved extensive feedback from investors and other market participants. The commentary period was extended to provide time to incorporate all of the market's feedback and respond to the analytical challenges of applying recovery ratings globally across all sectors. Having gathered this feedback, Fitch has begun the process of converting its issuer and issue ratings to reflect the new methodology.

Download paper (80K PDF) 8 pages

Related Reading:
Recovery Ratings: Developing an Effective Methodology for Banks
Recovery Ratings Reveal Diverse Expectations for Loss in the Event of Default
Recovery Ratings Home Page

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