Fitch Ratings plans to add the symbol 'sf' to its structured finance ratings globally.
According to a statement from the rating agency, the 'sf' symbol will only indicate that the security is a structured finance instrument and will not reflect any other change to the meaning or definitions of its ratings.
This change will be made in connection to the European Union's (EU)regulation requiring rating agencies to add symbology to denote the ratings of structured finance instruments.
The European Regulation on Credit Rating Agencies was effective in December 2009. The agency's EU operations will be applying for registration under the EU Regulation by the end of this summer.
Fitch also plans to endorse ratings issued by other parts of its groups located outside the EU that are eligible for endorsement under the EU Regulation. It will make similar adjustments to its ratings to denote a rating by a non-EU Fitch entity that has been endorsed for use within the European Union.
In the last few years, Fitch Ratings has implemented a variety of initiatives that enhance its reliability and transparency of its ratings and research, the statement said.
Some of these efforts have been driven by the rating agency's own perspectives and ongoing engagement with market players. Others reflect the evolving regulatory regimes under which credit rating agencies operate worldwide.
The above changes will be reflected at www.fitchratings.com in its rating commentaries, and in its data feeds. Fitch will continually update the market on any developments on these topics.