Over the last 18 months, the ratings agencies have been criticized for the lack of transparency and more importantly, accuracy, in their ratings of mortgage backed securities. Fitch Ratings last week released its ratings guidelines for CCRCs to explain their logic and criteria for rating individual projects that are associated with their bond offerings. The ratings guidelines reflect solid principals of commercial loan underwriting standards with a focus on the retirement community operations and real estate. The report, while dry, provides a more common understanding of how it rates its bonds and goes into the logic behind the upgrades and downgrades of the bonds associated with CCRCs.
Fitch hosted a conference call to discuss the release of the report and provides an indepth explanation of the report. A replay of the teleconference will be available starting two hours after the teleconference is completed and will be available until Jan. 18 close of business. To listen to the teleconference replay, participants should call +1-800-642-1687 (Domestic) or +1 706-645-9291 (International). The conference ID number for the replay is ‘77869404.’
For the full report, click here.