Okay,here’s a breakdown of the key disclaimers and critically important details contained in the provided text from Fitch Ratings. This is essentially a “terms of service” or “critically important notice” for anyone using Fitch’s ratings and reports. I’ll categorize it for clarity:
1. Limitations of Ratings & Forward-Looking nature:
* Opinion, Not Fact: Fitch ratings are opinions about creditworthiness, not guarantees of performance.
* Reliance on Others: Fitch relies on the work of experts (auditors, lawyers) and cannot independently verify all information.
* Inherent Uncertainty: Ratings are forward-looking and based on predictions, which are inherently uncertain and subject to change. Future events can impact ratings even if current information is accurate.
* Not a Guarantee Against All Risks: Ratings primarily address credit risk. They don’t necessarily cover other risks (like market risk,liquidity risk,etc.) unless specifically stated.
2. “As Is” & No Warranty:
* “As Is” provision: Information is provided “as is” with no warranties or representations of any kind.
* no Guarantee of Meeting Requirements: Fitch doesn’t guarantee its reports will meet a recipient’s specific needs.
3. Collective Work Product & Individual Obligation:
* Shared Authorship: Reports are the collective work of Fitch,not the sole responsibility of any individual.
* Contact Information Onyl: Individuals listed in reports are for contact purposes, not as the sole authority on the rating.
4. Not Investment Advice & Due Diligence:
* No Investment Advice: Fitch does not provide investment advice.
* Not a Prospectus: A Fitch rating is not a substitute for the issuer’s own disclosures to investors. Investors must do their own due diligence.
* no Buy/sell/Hold Recommendation: Ratings are not recommendations to buy, sell, or hold securities.
* No Comment on Price or Suitability: Fitch doesn’t comment on market prices or whether a security is suitable for a particular investor.
5. Fees & Conflicts of Interest:
* Fees from Issuers: Fitch receives fees from issuers, insurers, guarantors, and underwriters for rating securities.
* Fee Range: Fees vary significantly, from US$1,000 to US$1,500,000 per issue or annually.
* No Consent for Expert Use: Fitch doesn’t consent to its name being used as an expert in registration statements.
6. Regulatory & Jurisdictional Information:
* Early Electronic Access: Electronic subscribers may receive research up to three days before print subscribers.
* Australia/New Zealand/Taiwan/South Korea: Fitch Australia Pty Ltd is licensed to provide ratings only to wholesale clients in those countries.It’s not intended for retail clients.
* NRSRO Registration: Fitch Ratings, Inc. is a registered NRSRO (Nationally Recognized Statistical Rating Association) with the U.S. SEC. Some subsidiaries are listed on Form NRSRO, others are not.
In essence, this disclaimer is a comprehensive effort by Fitch to protect itself from liability and to ensure that users of its ratings understand the limitations and potential biases inherent in the rating process. It emphasizes that ratings are opinions, not guarantees, and that investors must conduct their own independent research and due diligence.
