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> Fitch is committed to provide transparent rating process, objective and timely credit perspective and responsive leadership to the market
Why Fitch?
Fitch is an effective and proven alternative, offering issuers and their advisors the benefits of: > > > > > > > > Critical mass coverage Broad investor acceptance Clear and transparent methodologies and processes Highly skilled, experienced and accessible analysts A best in class research offering to a world wide client base of credit risk managers and investors a great shop window for issuer visibility A complete range of rating products A strong service ethos dedicated to timely delivery of all aspect of its product and service offering Provide national ratings, which complements international ratings, in countries capped by a lower sovereign rating e.g. India, Sri Lanka, Thailand, Indonesia, Taiwan and Philippines
Source: Q4 2007; Figures exclude 1,418 German & Austrian Co-Ops as well as 282 German & Austrian Savings Banks
Transparency
> Detailed sector criterion available on website Criteria reports finalized in consultation with investors, thus ensuring consistency > Transparent Process Report format designed to facilitate credit decision One report which goes to committee comes back to issuer after rating is assigned and same is released to investors on publication Issuer/Investor know what has gone into rating Analyst is available to investors/bankers for seeking opinion at any point of time before or after rating is assigned
Sovereigns
Corporates
Financial Institutions
Structured Finance
Investment Grade
Leveraged Finance
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Siemens AG
Bharat Heavy Electrical Crompton Greaves Warstila
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Caterpillar
Cummins
Electric de France (EDF) > Hydro Quebec Powergen plc Tata Power Trading Noida Power Company Tata Maithon Power Coastal Power Spectrum Power > > > > > > > > >
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> Jaiprakash Hydropower Indian Renewable Energy > Development Agency > Enercon (India) Limited* Tamil Nadu Electricity Board Meghalaya State Electricity Board Neyvelli Lignite >
* Shadow/private ratings
Debt Markets
Debt Markets
> Access to Indian debt markets is restricted to AAA and AA+ rated issuers. Some investors also invest in issuers rated upto A+. Liquidity is however restricted upto AA+. Short debt market very liquid for F1+(ind) / F1(ind) rated papers Markets currently are awash with liquidity currently with more than INR1.2 trillion lent by banks to RBI in reverse repo Presented below how market conditions have changed from Nov 08 to June 09
> November 08 AAA spreads shot ranged between 350 to 450bps (5year papers) Heightened risk perception post lehman collapse Tight liquidity conditions Very few deals Life Insurance Corporation emerged as major investor in corporate debt paper Short Term 90 day CP at 13-14% for F1+(ind) rated papers > June 09 AAA spreads have come down and range between 150 to 175bps ( 5 year papers) Risk perception more rational (worst seems over) Easy liquidity conditions
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Debt Markets
Select Market deals June 23, 2009
Issuer REC SAIL PFC Fitch Rating AAA AAA AAA Residual Maturity (Approx) 4 yr 5 yr 10 yr Yield(% p.a) (annualized) 8.14 8.14 8.63
Fitch Ratings is a global ratings agency dedicated to providing the worlds markets with independent, timely and prospective credit opinions. Built on a foundation of organic growth and strategic acquisitions, Fitch Ratings has grown rapidly during the past decade by gaining market presence throughout the world and across all fixed income markets. > With 49 offices worldwide, in more than 36 countries > Rated entities in over 150 countries > Strategic acquisitions including BankWatch, IBCA, and Duff & Phelps > Fitch Ratings employees: 1,950 (1,061 analysts)
Global Presence
New York McLean Toronto Chicago Moscow Warsaw Frankfurt
Powell San Francisco Austin Tampa Monterrey Mexico City San Salvador San Jose Quito Lima La Paz So Paulo Santiago Buenos Aires
Beijing Seoul Tokyo Taipei Hong Kong Bangkok Singapore Brisbane Sydney
FY 2006
FY 2007
FY 2008
100% 95% 91% 92%
80%
65% 67%
78% 74% 64% 67% 60% 59% 55% 54% 53% 53% 65% 66% 69% 71%
60%
40%
20%
0% Structured Finance Financial Institutions Non-Financial Corporates US Public Finance Sovereigns Total Market Share
Global Indices:
> > > Merrill Lynchs Global Family of Indices Lehman Brothers Global Family of Indices iBoxx Family of Indices which include: > > > > > > > > > > > iBoxx ABF Indices iBoxx USD Bond Indices iBoxx European Bond Index iBoxx Euro High Yield Index
Banc of America Securities Broad Market Indices The Bond Buyer Indexes Lehman Munipal Bond Index NASD Bloomberg Corporate Bond Indices UBS Bond Index iTraxx Credit Default Swap Indices DJ CDX Indices / CDX IndexCo Indices
Ratings Delivery Service to All Major Institutional Investors and Development Banks (2003-2004)
MarketAxess Institutional Bond Trading Platform (2003) Ongoing Initiatives: Incorporation of Fitch Ratings on the Sell Side Grids, Ratings Feeds of All Major Investment Banks
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Regulators
> > Securities and Exchange Commission Nationally Recognized Statistical Rating Organization (NRSRO) Designation (1975) Asian Central Banks- Included as a recognised agency by Hong Kong Government under the Trustee Ordinance (Cap.29)
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Investment Guidelines
> > CalPers incorporates Fitch Ratings into its Fixed Income Investment Guidelines, Alongside S&P and Moodys (2004) Top 100 Fixed Income Institutional Investors
The office is licensed by the Securities Exchange Board of India (SEBI) to assign national or local ratings.
Fitch Ratings currently maintains coverage of 63 financial institutions in India including banks and insurance companies. Additionally, the agency currently rates over 250 corporate issuers maintains surveillance on over 174 Indian structured finance transactions. Fitch Ratings actions impact and move markets. Fitch Ratings has integrated international best practice with local market knowledge.
Dedicated team at Fitch Ratings who focus their efforts on outreach initiatives with credit decision makers and fixed income investors.
Intensive dialogue with capital market participants to ensure that feedback and needs of capital markets are proactively solicited on a regular basis.
Fitch Friday regular seminars by experts on material topics
Fixed Income Investors in Fitch Ratings Investor Development Programme (Selected US Investors)
Fixed Income Investors in Fitch Ratings Investor Development Programme (Selected European Investors)
Fixed Income Investors in Fitch Ratings Investor Development Programme (Selected Asia Pacific ex Japan
Investors)
Fixed Income Investors in Fitch Ratings Investor Development Programme (Selected Japan Investors)
Reliance Industries
IDBI
Recent Additions
F1+
AA+ AA AAA+
F1
A A-
F2 F3
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