Rating hybrids in an environment characterised by regulatory
uncertainty is giving agencies plenty to think about.
James Longsdon, co-head EMEA financial institutions at Fitch
rating, which published an exposure draft on rating bank hybrid
securities in the summer, said that the agency tried to assess
the risks of missing a coupon, deferring a coupon, or writing
down a distressed debt exchange - permanently or
"Where we think we can objectively measure non-performance
risk we assign ratins. If we don't think we can, then to...