Fitch Ratings said today that it does not assign Issuer Default Ratings (IDRs) to special purpose vehicles (SPVs) used in structured finance because of their lack of standalone commercial substance.

The agency said its decision applies only to IDRs that would be assigned to the SPV itself and not to the issue ratings (IRs) that are assigned by Fitch to securities issued by SPVs, most commonly seen in the structured finance sector. IRs for securities issued by SPVs will continue to be assigned by Fitch in accordance with the relevant structured finance rating criteria.

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