Fitch Ratings has published the new rating criteria for the analysis of transactions backed by collateral composed of shipping container boxes.

The report outlines the framework Fitch applies to rate transactions of this kind. The methodology assesses the capacity of the collateral to generate cash flow from leasing to shipping companies, and from sales in the secondary market.

Fitch evaluates both quantitative and qualitative factors when assigning a rating to a transaction back by shipping containers. The qualitative factors relate to assessment of the quality of the seller and servicer as their actions will affect cash flow generation. The quantitative factors relate to the assessment of collateral characteristics and performance drivers to forecast the cash flow for each type of container box. The rating framework is applicable to new transactions and surveillance analysis of existing transactions. Fitch caps the ratings under this this asset class at ‘Asf’.
Source: Fitch Ratings