...This report outlines Fitch Ratings' approach to rating future flow securitizations in emerging markets. A future flow transaction securitizes the cash flow originating from a specific business line of a bank or company that produces goods or services typically for foreign entities located offshore. The structure of the future flow transaction is designed to collect cash flows in a dedicated offshore collection account. When rating a future flow transaction, Fitch uses a multidisciplinary approach led by Fitch's structured finance team and involves Fitch's sovereign group, corporates/financial institutions group, and legal department. The rating incorporates an analysis of the probability of the originator producing and delivering a specific product to certain obligors and the assurance that the obligors or correspondent banks will remit cash flows due from the receivables into an offshore collection account. Fitch analyzes the transaction's ability to legally protect the future flow investors...
