Rating agency Fitch has intensified the collateralised debt obligation (CDO) rating war by revamping its CDO evaluation methodology. It says its new approach should help reflect the true credit quality of a CDO, while market participants suggest Fitch is moving to build its anti-notching crusade (Risk May 2002, S4–5) and convince CDO issuers and investors that Standard & Poor’s (S&P) and Moody’s Investors Service’s notching practice is unfair.
Notching is where rating agencies developing an o
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