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

NEW YORK--()--Fitch Ratings today published a 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. 25, 2014. There are no substantive changes to the criteria.

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 progression toward achieving investment-grade ratings. Mortgage REITs typically have a soft cap at the 'BBB' rating category.

The full report is available on Fitch's web site at 'www.fitchratings.com', or by clicking on the link.

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

Applicable Criteria and Related Research:

-- 'Global Non-Bank Financial Institutions Rating Criteria' (Dec. 17, 2014);

-- 'Treatment and Notching of Hybrids in Non-Financial Corporate and REIT Credit Analysis' (Nov. 25, 2014).

Applicable Criteria and Related Research: Criteria for Rating U.S. Mortgage REITs and Similar Finance Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=861835

Global Non-Bank Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=834029

Treatment and Notching of Hybrids in Non-Financial Corporate and REIT Credit Analysis

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=821568

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

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

Contacts

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