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Fitch Ratings
Fitch Ratings
Inc. is one of the "Big Three credit rating agencies",[3] the other two being Moody's and Standard & Poor's. It is one of the three nationally recognized statistical rating organizations (NRSRO) designated by the U.S. Securities and Exchange Commission in 1975. Fitch Ratings
Fitch Ratings
is dual-headquartered in New York, USA, and London, UK.[4] Hearst owns 80% of the company following its acquisition of an additional 30 percent on December 12, 2014, in a transaction valued at $1.965 billion. Hearst’s previous equity interest was 50% following expansions on an original acquisition in 2006. The remaining 20% of Fitch is owned by FIMALAC
FIMALAC
SA, which will hold 50% of votes within the Board until 2020.[8] Fitch Ratings
Fitch Ratings
and Fitch Solutions are part of the Fitch Group. The firm was founded by John Knowles Fitch on December 24, 1914 in New York City as the Fitch Publishing Company. It merged with London-based IBCA Limited in December 1997. In 2000 Fitch acquired both Chicago-based Duff & Phelps Credit Rating Co. (April) and Thomson Financial BankWatch (December). Fitch Ratings
Fitch Ratings
is the smallest of the "big three" NRSROs, covering a more limited share of the market than S&P and Moody's, though it has grown with acquisitions and frequently positions itself as a "tie-breaker" when the other two agencies have ratings similar, but not equal, in scale. In September 2011, Fitch Group announced the sale of Algorithmics (risk analytics software) to IBM
IBM
for $387 million.[9] The deal closed on October 21, 2011.[10]

Contents

1 Investment Scale 2 Short-term credit ratings 3 Fitch Solutions 4 Criticism 5 See also 6 References 7 External links

Investment Scale[edit] Fitch Ratings' long-term credit ratings are assigned on an alphabetic scale from 'AAA' to 'D', first introduced in 1924 and later adopted and licensed by S&P. ( Moody's also uses a similar scale, but names the categories differently.) Like S&P, Fitch also uses intermediate +/− modifiers for each category between AA and CCC (e.g., AA+, AA, AA−, A+, A, A−, BBB+, BBB, BBB−, etc.). Investment grade

AAA  : the best quality companies, reliable and stable AA  : quality companies, a bit higher risk than AAA A  : economic situation can affect finance BBB  : medium class companies, which are satisfactory at the moment

Non-investment grade

BB  : more prone to changes in the economy B  : financial situation varies noticeably CCC  : currently vulnerable and dependent on favorable economic conditions to meet its commitments CC  : highly vulnerable, very speculative bonds C  : highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay out on obligations D  : has defaulted on obligations and Fitch believes that it will generally default on most or all obligations NR  : not publicly rated

Short-term credit ratings[edit] Fitch's short-term ratings indicate the potential level of default within a 12-month period.

F1+  : best quality grade, indicating exceptionally strong capacity of obligor to meet its financial commitment F1  : best quality grade, indicating strong capacity of obligor to meet its financial commitment F2  : good quality grade with satisfactory capacity of obligor to meet its financial commitment F3  : fair quality grade with adequate capacity of obligor to meet its financial commitment but near term adverse conditions could impact the obligor's commitments B  : of speculative nature and obligor has minimal capacity to meet its commitment and vulnerability to short term adverse changes in financial and economic conditions C  : possibility of default is high and the financial commitment of the obligor are dependent upon sustained, favorable business and economic conditions D  : the obligor is in default as it has failed on its financial commitments.

Fitch Solutions[edit] Launched in 2008, Fitch Solutions offers a range of fixed-income products and professional development services for financial professionals. The firm also distributes Fitch Ratings' proprietary credit ratings, research, financial data, and analytical tools. Criticism[edit] See also: Credit rating agency § Criticism The main Credit rating agencies, including Fitch were accused of misrepresenting the risks associated with mortgage-related securities, which included the CDO market. There were large losses in the collateralized debt obligation (CDO) market that occurred despite being assigned top ratings by the CRAs. For instance, losses on $340.7 million worth of collateralized debt obligations (CDO) issued by Credit Suisse Group
Credit Suisse Group
added up to about $125 million, despite being rated AAA by Fitch.[5] However, differently from the other agencies, Fitch has been warning the market on the constant proportion debt obligations (CPDO) with an early and pre-crisis report highlighting the dangers of CPDO's.[6] See also[edit]

FIMALAC Kroll Bond Rating Agency List of countries by credit rating Moody's Investors Service Spread Research Standard and Poor's

References[edit]

^ Group, Fitch. "2011 Fiscal". FIMALAC. Retrieved 26 March 2012.  ^ "About". www.fitchratings.com. Retrieved 19 March 2018.  ^ Blumenthal, Richard. "Three credit rating agencies hold too much of the power - Juneau Empire - Alaska's Capital City Online Newspaper". www.juneauempire.com. Retrieved 19 March 2018.  ^ http://hugin.info/143461/R/1601708/505879.pdf ^ Tomlinson, Richard; Evans, David (2007-06-01), "CDOs mask huge subprime losses, abetted by credit rating agencies", International Herald Tribune  ^ Linden, Alexandre; Neugebauer, Matthias; Schiavetta, John; Zelter, Jill; Hardee, Rachel (2007-04-18), First Generation CPDO: Case Study on Performance and Ratings 

External links[edit]

Fitch Ratings Fitch Solutions Fitch Learning U.S. Credit: Fitch Ratings

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Hearst Communications

Daily newspapers

The Advocate Times Union Beaumont Enterprise Connecticut Post The Courier (Conroe, Texas) Edwardsville Intelligencer Greenwich Time The Hour Houston Chronicle Huron Daily Tribune Journal-Courier Laredo Morning Times Manistee News Advocate The Middletown Press Midland Daily News Midland Reporter-Telegram New Haven Register The News-Times The Pioneer Plainview Daily Herald The Register Citizen San Antonio Express-News San Francisco Chronicle seattlepi.com The Telegraph Connecticut Magazine

Weekly newspapers

Cleveland Advocate Eastex Advocate Examiner Newspapers (Bellaire, Memorial, River Oaks, West University) The Lake Houston Observer The Potpourri (Magnolia and Tomball) Sugar Land Sun The Villager (The Woodlands, Texas) La Voz de Houston

Magazines

United States

Car and Driver Cosmopolitan Country Living Elle Elle Decor Esquire Food Network Magazine Good Housekeeping Harper's Bazaar

harper by Harper's Bazaar

House Beautiful Marie Claire
Marie Claire
(US) O, The Oprah Magazine Popular Mechanics Redbook Road & Track Seventeen Town & Country Woman's Day CDS Global Hearst Magazines Digital Media

ELLEgirl.com espin Lenny Letter Shondaland.com

International

All About Soap Company Digital Spy Elle Esquire Inside Soap Psychologies Quo Sugar

Hearst TV Television stations by affiliation

ABC

KETV KHBS
KHBS
/ KHOG KMBC KOAT KOCO KSBW-DT2 WAPT WCVB WISN WJCL WMUR WMTW WPBF WTAE

The CW

KCWE KHBS-DT2 / KHOG-DT2 WCWG WKCF WPTZ-DT2

Other

CBS

KCCI WLKY

Independent

WMOR

MyNetworkTV

KQCA KCCI-DT3

NBC

KCRA KSBW WBAL WDSU WESH WGAL WLWT WPTZ
WPTZ
/ WNNE WVTM WXII WYFF

Acquisitions

Pulitzer, Inc.

Radio stations

WBAL WIYY

Entertainment and syndication

A&E Networks (50%) Cosmopolitan Television
Cosmopolitan Television
(part owner) DailyINK ESPN Inc.
ESPN Inc.
(20%) King Features Syndicate Light TV
Light TV
(part owner) Litton Entertainment
Litton Entertainment
(major) NorthSouth Productions (50%) Reed Brennan Media Associates Texture (part owner) Verizon Hearst Media Partners (50%)

AwesomenessTV Complex Networks

Business media

Black Book First Databank Fitch Ratings
Fitch Ratings
(80%)

BMI Research

Motor

Real estate

Hearst Tower Hearst Service Center Hearst Ranch

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Nationally recognized statistical rating organizations (NRSROs)

Standard & Poor's Moody's Investors Service Fitch Ratings Kroll Bond Rating Agency A.M. Best Company Dominion Bond Rating Service Japan Credit Rating Agency Egan-Jones Rating Company Morningstar, Inc. HR Ratings de Mé

.