...Fitch Ratings' current tax-supported ratings do not consider prospects for recovery in the event of default. This exposure draft details Fitch's proposal to begin to include information on recovery to market participants by assigning security ratings above the issuer default rating (IDR) in limited cases in which there are distinct and significantly superior prospects for ultimate recovery for particular securities in the event of a municipal bankruptcy. Fitch invites feedback from market participants on the proposed addition of enhanced recovery considerations to its tax-supported rating criteria. In addition to general feedback on this exposure draft, Fitch seeks responses on the following questions: 1. Is two notches an appropriate amount of rating uplift from the IDR for GO bonds secured by a statutory lien, or would a larger or smaller level of uplift better convey the improved recovery prospects provided by a statutory lien? 2. Other than the differentiation of specific security ratings...
