Fitch Publishes Updated Chilean Residential Mortgage Criteria

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has today published updated rating criteria for assessing credit risk in Chilean residential mortgage loan pools that are used as collateral for structured finance transactions. This report updates and replaces the prior criteria report with the same name, dated Feb. 17, 2012.

The changes to the previous criteria relate to revised assumptions for recovery rates for Chilean mortgage portfolios. The revised assumptions include increased House Price Decline assumptions for every rating category, as well as the inclusion of a conservative property price indexation for properties valued before 2014. As a consequence of these changes, Fitch expects no impact on existing ratings.

The report sets out the Chilean-specific issues addressed in Fitch Ratings' analysis of securities backed by Chilean residential mortgage loans. The addendum should be viewed together with Fitch Research on 'Latin America RMBS Rating Criteria,' dated December 2015, available on Fitch's Web site at www.fitchratings.com, for a comprehensive understanding of Fitch's approach to rating Chilean RMBS transactions.

The published criteria assumptions will be utilized in rating new and existing Chilean RMBS transactions. Fitch's current portfolio is exclusively rated on the national scale identified by (cl) ratings suffix. The RMBS transaction surveillance process involves a number of quantitative and qualitative factors, including an assessment of market developments, loan-by-loan and pool-level analysis, and a comparison with current credit enhancement levels against a stress loss assumption at each rating category.

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

RMBS Latin America Criteria Addendum - Chile

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=877981

Applicable Criteria

Latin America RMBS Rating Criteria (pub. 17 Dec 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874906

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160301006395/en/

Fitch Ratings
Juan Pablo Gil
Senior Director
+1-312-606-2301
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Greg Kabance
Managing Director
+1-312-368-2052
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
[email protected]

Source: Fitch Ratings

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