Fitch meaning

On 16 March 2026, Fitch Ratings stated that initial losses should be 'manageable', yet cautioned that insurers could face capital strain in the event of a prolonged conflict or wider financial instability. The London market, which encompasses reinsurers, brokers and insurers, as well as Lloyd's of London, provides high-value cover for specialist insurance lines, in particular marine, aviation, energy and political risk...

In this issue: Insurance types EU Regulation Cases tracker Dates for your diary Daily and weekly news alerts LexTalk®Insurance: a Lexis®Nexis community Insurance types Marine According to the International Underwriting Association (IUA), oil tankers are avoiding the Strait of Hormuz because of safety fears, not a lack of insurance capacity. See News Analysis: Iran oil crisis not due to lack of insurance, trade body says. Fitch Ratings said the London insurance market could face direct exposure to marine and aviation claims arising from the war in Iran. See News Analysis: London insurance market faces Iran war risk, Fitch says Aviation On 16 March 2026, reinsurers including American International Group (AIG) and AXA asked a London judge to pare back claims by Chubb European Group SE (Chubb) and Fidelis Insurance Ireland DAC (Fidelis) seeking to cover liabilities to aircraft lessors for planes stranded in Russia after the invasion of Ukraine, arguing the claims...

On 3 January 2024, Fitch Ratings delivered an upbeat outlook for the sector, forecasting another year of record‑setting UK deal volumes over the year ahead. The definitive calculation of the aggregate value of 2023 pension buy‑in and buyout transactions remains unpublished; however, the broad consensus among specialists is that it will top the prior high of £43.8bn achieved in 2019. The agency further indicated that this trajectory is expected to endure throughout 2024...

What are investment-grade, high yield and crossover bonds? Investment grade (IG) bonds are debt instruments that hold an IG credit rating: BBB and above on the S&P and Fitch scales, and Baa3 and above on the Moody’s scale (for further detail on credit ratings, see Practice Note: Credit ratings). IG issuers are usually sizeable blue‑chip corporates—well‑known, well‑established and well‑capitalised—and are often companies with shares listed on a major stock exchange. Aside from sovereign bonds of developed markets, IG securities are widely regarded as among the safest income‑generating investments. As a consequence of this perceived safety, IG bonds tend to offer lower yields than high yield (HY) bonds. Many institutional investors and pension schemes operate policies and mandates that constrain their bond holdings to assets with, on average, lower default risk, such as IG instruments or government obligations. In broad terms, HY bonds encompass all bonds from issuers rated below IG. HY issuers may include public companies that lack (or previously had but later lost) an IG rating, private companies...

This Practice Note outlines the part ratings agencies play in the debt capital markets and sets out key documentary considerations for those agencies. Rating agencies and their role Rating agencies assign credit ratings to issuers of debt securities for public or private use. Issuers—whether corporate, sovereign, financial or other entities—may themselves be rated. That rating may equally apply to any debt securities they issue and are directly responsible for, where no credit enhancements are in place. Debt securities can be rated separately from the issuer where the issuer is a company created specifically to issue the debt (a special purpose vehicle (SPV)) or where the instruments benefit from credit enhancements (eg a guarantee) that strengthen them beyond the issuer’s standing rating. A credit rating is obtained on application by the issuer to one or more rating agencies. Rating agencies—key institutions The international credit ratings market is dominated by three major institutions: S&P, previously Standard & Poor’s Moody’s Fitch Ratings, known as...

Debt Capital Markets Glossary—A Accelerate Acceleration of a note means declaring it immediately due and payable before its scheduled maturity when an event of default arises, and this requires notice to be given. Agreement among managers A contract between the managers that sets out the nature and terms of their relationship, generally based on the International Capital Market Association (ICMA) standard form. Allotment The portion of notes offered by the lead manager to the syndicate. Allotment telex Where no co-managers are invited to the syndicate, the lead manager handling documentation sends the other lead managers an allotment telex confirming the allocation of the notes, subject to completion of the issue. Debt Capital Markets Glossary—B Basis point One hundredth of a per cent (0.01%); i.e. a rate of a stated benchmark plus 75 bps equals that benchmark rate plus 0.75%. Bearer form The key characteristics of bearer securities are that: a bearer security is a...