Fitch Publishes Inaugural Road to Recovery Ratings Report

Fitch Ratings' has published the inaugural installment of its recurring recovery-focused Leveraged Finance report. In this 28-page report, Fitch traces the path to recovery estimates by focusing on the key input drivers and their evolution since 2006 for applicable Fitch-rated U.S. corporate issuers. These input assumptions include EBITDA discount, distressed valuation multiple and valuation approaches. The report also provides a snapshot of the distribution of Recovery Ratings (RRs) for Fitch's publicly and non-publicly rated portfolio of more than 200 leveraged issuers.

The second half of the report performs a reality check on Fitch's recovery methodology by contrasting Fitch's expected RRs with actual recovery experience. The analysis illustrates that Fitch's RR expectations are generally in line with actual recovery outcomes.

The findings attest to the value of Fitch's 'tailored' or bespoke recovery analysis while acknowledging the element of subjectivity that exists in any such analysis. Fitch's recovery methodology factors in idiosyncratic differences among issuers and provides transparency around the different types of claims that may arise, as well as the likely treatment of each type, in a bankruptcy scenario.

The full report 'Road to Recovery Ratings' is available at www.fitchratings.com/sectors/Corporate Finance/Leveraged Finance.

For more information, visit: 'www.fitchratings.com/usleveragedfinance'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--Fitch U.S. High Yield Default Insight -- 2011 Review, Jan. 20, 2012

--U.S. Leveraged Financed Multiple EV-aluator, Nov. 15, 2011

--Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers, May 13, 2011

--Fitch 50 -- Structural Profiles of 50 Leveraged Credits, July 20, 2011.

Applicable Criteria and Related Research: U.S. Leveraged Finance: Road to Recovery Ratings

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=669429

Fitch 50 -- Structural Profiles of 50 Leveraged Credits

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646322

Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=628489

U.S. Leveraged Finance Spotlight -- Sprint Nextel Corp.

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=653926

Fitch U.S. High Yield Default Insight ￢ﾀﾔ 2011 Review

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=666053

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