...This report presents Fitch Ratings' criteria for assigning credit ratings to state revolving fund (SRF) programs and similar municipal loan pools (MLPs). Fitch's analysis of SRF and MLPs include both quantitative and qualitative factors. Quantitative aspects of Fitch's review include portfolio credit risk, which is addressed by Fitch's Portfolio Stress Calculator (PSC), and the risk of the financial structure, which is addressed in Fitch's cash flow modeling. Qualitative risks in SRFs and MLPs consist of the legal risks inherent in program documentation, risks of governance/management and any counterparty risk. Where qualitative risks prove to be greater than Fitch's base assumptions at a given rating level, rating caps or additional quantitative stresses may be imposed. This report represents a sector-specific extension of Fitch's "Revenue-Supported Rating Criteria," dated June 2013, and "Global Structured Finance Rating Criteria," dated May 2013, both are available on Fitch's website...
