At Fitch Ratings, we make use of both qualitative and quantitative analyses to assess the business and financial risks of fixed-income issuers. Ratings are an assessment of the issuer's ability to service debt in a timely manner and are intended to be comparable across industry groups and countries. Because short- and long-term ratings are based on a company's fundamental credit characteristics, a correlation exists between them. Analysis typically involves at least five years of operating history and financial data as well as company and rating agency forecasts of future performance. To achieve a clearer perspective on relative performance, a company's performance is compared with that of others in its peer group. In addition, a sensitivity analysis is performed through several "what if" scenarios to assess a company's capacity to cope with changes in its operating environment. A key rating factor is financial flexibility, which depends, in large part, on the company's ability to generate cash from operations.

Some of the detailed rating methodologies we have published in the past are given below.

• Corporates Rating Methodology

• Rating State Electricity Boards

• Public Power Rating Guidelines

• An Approach to Rating Steel Companies

• Ratings Methodology for Asian Telecommunications Issuers

• National Ratings : Methodology Update