Fitch Ratings

Fitch Ratings is an international rating agency renowned for its independant and apt credit reports. It has its headquarter in London and New York although its offices have mushroomed in 49 locations.

The products and services that are provided by Fitch Ratings are detailed under the following heads:

• Research: The credit research that is carried out by Fitch Ratings is of immense use to bankers, issuers and investors.
  
  
• Ratings: There are various channels through which the users may obtain the credit ratings . Users can have ratings online and data feeds. Information is also fed into the company systems. This facility has helped in better portfolio and risk management.
  
  
• Financial Data: Apart from credit rating, Fitch Ratings also engages in the supply of financial data. The analysts use the corporate , bank, sovereign and insurance data that is provided by Fitch Ratings. The Credit Default Swap data is also provided to the clients who require it on an urgent basis.
  
  
• Tools and Model: The tools and models that are provided to the users are useful for measuring the risk level. There are two types of credit ratings that are done by Fitch Ratings. They are:
  
  
  1. Long Term Ratings: The ratings are done along a standardised scale of AAA to D. This scale was introduced in 1924. The average companies are rated from AA to CCC.
     
     
  2. Short Term Credit Ratings: This process rates all entities who have the chance of failing to repay the debt obligations within a year.

The Fitch Ratings is criticised on the following grounds:

Inspite of providing accurate and timely ratings, huge losses were incurred in the Collateralized Debt Obligation market. Collateralized debt obligations worth $340.7 million that were issued by the Credit Suisse Group suffered huge losses although it was rated AAA ( best and most reliable) by Fitch Ratings. The loss amounted to $ 125 million.