Notch

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Notch

Slang; in bond trading, a small increase or decrease in a bond rating. For example, if a rating goes from AAA to AA+, it is said to decline by a notch.
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MARC's notching guidelines reflect the lower recovery prospects and higher risks of write-off or enforced conversion of capital instruments for Basel III-compliant capital instruments as compared to their Basel II predecessors, particularly for banks rated lower on financial strength.
Although control and experimental lobsters in tank C did not demonstrate significant differences in mortality, particular interest is paid to the period at the start of the experiment, when 12% of v-notched lobsters died immediately after notching.
Some in the industry argue that the primary cause of error in pendulum impact tests is incorrect or inconsistent notching of test specimens.
This criteria report covers Fitch's treatment of hybrids in the analysis of Nonfinancial Corporate and REIT issuers and the notching of hybrids in these sectors.
A summary of the major areas of feedback, and Fitch's responses, can be found in the report 'Responses to Feedback on Insurance Industry Notching Methodology' also published today and available on the Fitch Ratings web site at 'www.
In recent years, Fitch had maintained non-standard notching between THG's IFS ratings and debt ratings because of potential cash and capital needs of the company's life and annuity operations, and then more recently, concerns about the company's catastrophe exposure.
In conjunction with the implementation of Fitch's new global insurance notching methodology, the following issuer default ratings (IDR) have been assigned with a Stable Rating Outlook:
Greater details on Fitch's new guidelines governing notching of issue ratings relative to the IDR, as well as the notching between Insurer Financial Strength Ratings (IFS) at an operating company level and debt ratings at a holding company level are available in the noted methodology report.
For holding companies that primarily own Bermuda domiciled insurance subsidiaries, the notching spread between insurance company financial strength ratings and holding company debt ratings is typically narrower under this new methodology, compared with U.
Greater details on Fitch's new guidelines governing notching of issue ratings relative to the IDR, as well as the notching between IFS at an operating company level and debt ratings at a holding company level are available in the noted methodology report.