Fitch Ratings will be introducing rating outlooks for U.S. structured finance deals.

This move is aimed at offering more forward-looking information  to  the  market. The rating agency also released a special report today addressing investor inquiries regarding these outlooks.

Similar to its  other  rating  groups,  the agency's  rating outlook indicates the
likely direction of any rating change over a one- to two-year period that may be Positive, Negative, Stable or, occasionally, Evolving.

Fitch will review its rating outlooks  concurrently  with  its review on a structured finance deal,   said Group  Managing  Director  John Bonfiglio, head of U.S. structured finance at the rating agency.

"Fitch  will  assign  rating  outlooks  to  each  rated tranche to offer investors a forward-looking opinion about the medium-term prospects of a tranche’s   performance,' Bonfiglio said. "Rating  outlooks  may  be influenced  by  factors  that  are  quantitative,  including performance relative  to  expectations,  and  more  qualitative in nature, including prospective economic and sector developments affecting collateral."

The agency will  also  supplement  its  rating outlooks with comments that provide reasons  for  the  assigned  or  revised outlooks similar in tone to its rationale long-term  rating changes. This will give the market a better understanding  of  the  potential  future  performance  of the tranches’ ratings.

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