Fitch Publishes Criteria on Rating U.S. Mortgage REITs and Similar Finance Companies

NEW YORK--()--Link to Fitch Ratings' Report: Criteria for Rating U.S. Mortgage REITs and Similar Finance Companies
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=700092

Fitch Ratings today published an updated criteria report that focuses on Fitch's methodology for analyzing the credit risk of mortgage real estate investment trusts (REITs) that own direct or indirect interests in mortgages on real estate or other interests in real property. The report, titled, 'Criteria for Rating U.S. Mortgage REITs and Similar Finance Companies,' updates and replaces a report of the same title dated Feb. 27, 2012.

Fitch's credit ratings for mortgage REITs are based on qualitative factors such as the company's business model, servicing capabilities, asset quality, management and governance, track record, and operating history. Quantitative factors include funding options, funding diversity, leverage and capitalization, unencumbered asset coverage, capital market access, dividend payout ratios, and operating performance.

Funding diversity and financing strategy, liquidity, and unencumbered asset quality are typically major obstacles in a mortgage's evolution toward achieving investment-grade ratings. Mortgage REITs typically have a soft cap of the 'BBB' rating category.

The full report is available on Fitch's web site at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Criteria for Rating U.S. Equity REITs and REOCs' (Feb. 26, 2013);

--'Treatment and Notching of Hybrids in Nonfinancial Corporate and REIT Credit Analysis' (Dec. 13, 2012);

--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012).

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contacts

Fitch Ratings
Steven Marks, +1-212-908-9161
Managing Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Sean Pattap, +1-212-908-0642
Senior Director
or
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Steven Marks, +1-212-908-9161
Managing Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Sean Pattap, +1-212-908-0642
Senior Director
or
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com