...Increased Probability of Default: Disruption to servicing is a potential risk to the performance of structured finance (SF) transactions. Fitch Ratings believes that increased operational risk as a result of servicing disruption, without sufficient safeguards, may increase the probability of a note event of default. This report provides a general framework for analysing the risk of servicer disruption and a discussion on the factors that can mitigate such risk. Consistent Approach: The approach taken in analysing servicer continuity risk is consistent globally; however, it does take into account differences in market conventions and the robustness of mitigants between certain asset classes and jurisdictions....
