Fitch Ratings recognizes that the quality, stability, and financial condition of seller/servicer operations have a direct effect on the performance of asset-backed securities (ABS) transactions across all product types. Therefore, Fitch has always used seller/servicer assessments to augment its ABS default, loss, and cash flow models when analyzing structures and assigning credit enhancement levels.

Building on this experience, Fitch has established a more formalized procedure to evaluate ABS seller/servicers' capabilities. The ultimate goal of the seller/servicer rating process is to enhance the overall credit process to appropriately measure and incorporate financial and operational risk while giving investors the increased transparency that they have come to expect from Fitch.

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