But Fitch acknowledged that the weightings allocated to each category is subjective - for example, the company’s management experience is weighted to be worth 10% of the ranking - and will not reflect the different risk:reward ratio of varying investors. So Fitch will publish both the weighting allocations and the scores given to the rated fund for each category, allowing investors to reconfigure the agency’s score to more accurately reflect the importance of each category to its investment decision.
Standard & Poors’ has produced rating reports on a dozen CDO asset managers, but does not assign final rating scores. Moody’s Investor Services has no ratings programme for CDO asset managers as yet.
The week on Risk.net, July 7-13, 2018Receive this by email