NEW YORK--(BUSINESS WIRE)--Fitch Ratings has updated its special report describing the representations, warranties and enforcement mechanisms (RW&Es) the agency typically sees in structured finance (SF) transactions.
The report has been updated to include several revised asset appendices for U.S. asset-backed securities (ABS). Specifically, the asset appendices for U.S. Retail Auto Loan ABS, U.S. Retail Auto Lease ABS, U.S. Equipment Loan and Lease ABS, U.S. Utility Tariff ABS, U.S. Aircraft Operating Lease ABS, and U.S. Timeshare Loan ABS have been revised. The appendices have been revised to reflect the typical RW&Es available to investors which are disclosed in the offering documents for these asset classes and that relate to the underlying asset pools.
The 'typical' RW&Es were derived from reviewing the documentation of recent transactions that Fitch views as representative of the asset classes defining what the agency regards as 'similar securities,' which will be used as the basis for comparisons in Fitch transaction-level reports.
The SEC's adoption of Rule 17g-7 requires Nationally Recognized Statistical Rating Organizations to include in credit reports a description of the RW&Es available to investors which are disclosed in the transaction's offering documents and that relate to the asset pool underlying the transaction as well as a comparison of these RW&Es to those contained in 'similar securities.'
The definitions of 'typical' RW&Es are expected to remain somewhat fluid as industry standards in many areas of structured finance continue to evolve. Periodically, Fitch intends to update this report and, in particular, the various asset-level appendices, to reflect the developments in standards.
The full report, 'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions,' is available at 'www.fitchratings.com' or by clicking on the link.
Additional information is available at www.fitchratings.com
Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended