Fitch Ratings intends to have expanded disclosure of representations, warranties and enforcement mechanisms in its global structured finance rating reports starting Sept. 26.

This is to comply with the Securities and Exchange Commission’s (SEC) adoption of Rule 17g-7 under the Dodd-Frank Act. The rule mandates Nationally Recognized Statistical Rating Organizations (NRSROs) to include in credit report, and for ABS offerings, a description of the reps and warranties and enforcement mechanisms (RW&E) that are available to buysiders. The rating agency will also compare them to the RW&E of ‘similar securities’.

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