Fitch Ratings Updates Its Criteria for Rating Sukuk

Fitch Ratings (Fitch) has updated its Sukuk rating criteria. According to a statement issued by Fitch, the update does not consist of any material changes, hence Fitch does not anticipate the application of said criteria to result in any changes to ratings of its existing transactions. The report explains Fitch’s approach to assigning and maintaining ratings for existing and new originator-backed (asset-based) Sukuk issuances.

Why it matters?

The structures of Sukuk vary and are likely to involve different underlying contractual arrangements. Therefore, each structure needs to be individually reviewed to assess whether it fits the updated criteria. The criteria look at the impact of the most common features in originator-backed Sukuk issuance ratings, an...