...Analysis of U.S. Utility Tariff Bonds: This report presents Fitch Ratings' analytical approach to rating U.S. utility tariff bonds. The criteria are relevant for new ratings and surveillance, with differences detailed herein. It outlines the unique features of a tariff bond relative to a traditional asset-backed security (ABS), notably, the bond's characteristics as an intangible, future-flow regulatory asset, and the special protections available to holders of tariff bonds that qualify achievement of `AAAsf' ratings. Fitch has only assigned `AAAsf' ratings in this sector, therefore, Fitch's new issue methodology only addresses `AAAsf' rating outcomes. Furthermore, the criteria consider the nuances and nature of the U.S. legal framework and utility market. Specifically, the stresses derived for the purposes of this methodology were developed based on historical data specific to each utility issuing the bonds....
