Fitch Updates Rating Criteria for Puerto Rico Closed-End Funds

jueves 4 de septiembre de 2014 11:29 GYT

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Rating Market Value Structures here NEW YORK, September 04 (Fitch) Fitch Ratings today published updated sector-specific rating criteria for debt and preferred stock issued by Puerto Rico closed-end funds (PR CEFs). Fitch expects no ratings changes as a result of the criteria update. This criteria supplements the CEF master criteria that Fitch published on Sept. 4, 2014 titled 'Rating Closed-End Fund Debt and Preferred Stock,' and updates and replaces the previous report titled 'Rating Puerto Rico Closed-End Fund Debt and Preferred Stock' published on Aug. 14, 2013. The core rating methodology remains intact without any material changes. PR funds launched prior to 2013 are generally regulated under the Investment Companies Act of Puerto Rico of 1954 (the old PR Act) and newly launched or converted PR funds are regulated under the Puerto Rico Investment Companies Act of 2013 (the new PR Act). While the same criteria for funds regulated under both the old and the new regulations applies, Fitch views the new PR Act as having the potential to be modestly credit positive. See criteria report for more information. KEY RATING DRIVERS --The presence of dynamic deleveraging/defeasance triggers; --The amount of risk-adjusted overcollateralization at the individual, sub-account level, and prudence in leverage management exercised at the fund level; --The liquidity, diversification and historical volatility of portfolio assets; --The capabilities of the investment manager to successfully manage fund investment and leverage strategies; and --Legal/regulatory parameters that govern fund operations. The criteria report, titled 'Rating Puerto Rico Closed-End Fund Debt and Preferred Stock' (Sept. 4, 2014), is available at '' or by clicking on the link. To receive forthcoming complimentary closed-end fund research from Fitch, opt-in at the following link: here Contact: Yuriy Layvand, CFA Director +1-212-908-9191 Fitch Ratings, Inc. 33 Whitehall St. New York, NY 10004 Ian Rasmussen Senior Director +1-212-908-0232 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: Additional information is available at ''. Applicable Criteria and Related Research: --'Rating Closed-End Fund Debt and Preferred Stock Rating Criteria' (Aug. 14, 2014); --'Rating Market Value Structures' (Sept. 4, 2014); --'Rating Debt and Preferred Securities Issued by Non-US Closed-End Funds' (March 14, 2014). Applicable Criteria and Related Research: Rating Puerto Rico Closed-End Fund Debt and Preferred Stock here Rating Debt and Preferred Securities Issued by Non-US Closed-End Funds here Rating Closed-End Fund Debt and Preferred Stock here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.