17.08.2012 - Fitch: Rating sukuk criteria updated, no rating impact
Fitch Ratings has updated its Rating Sukuk criteria. The updated do not contain any significant changes and will have no impact on existing ratings. These criteria apply to originator-backed (also called asset-based) sukuk structures, in which investors rely upon direct support features (i.e., repurchase agreements and liquidity arrangements) as well as upon the originator/issuer's ability to generate profits with the assets. The criteria do not apply to asset-backed sukuk, which rely on the underlying collateral. The report outlines Fitch's approach to rating sukuk, which are often referred to as "Islamic bonds" and represent undivided shares in the ownership of tangible assets, including the assets of particular projects or investment activities, and usufruct (the right to use the assets)...............................................Full Article: Source
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