...Intra-Group Loans: This report illustrates Fitch Ratings' treatment of intra-group loans, including a shareholder's or parent's loans, in rating non-financial corporates. In interpreting audited financial figures released by companies, and assessing the relevance of these numbers as inputs into our financial analysis, various adjustments may be made by analysts. The IDR Perimeter: Fitch assesses if the instrument constitutes a defaultable obligation (from a rating agency view) that should be included within the Issuer Default Rating (IDR) perimeter and in its recovery estimates, depending on where the unsecured or subordinated loan sits in the hierarchy of creditors' claims. Understanding these features may prompt a deconsolidated approach to analysing the group's entities. Key Issue for Segregated Groups: For the vast maturity of rated entities, intra-group lending is not a rating concern as the group structure, or contractual make-up, knits the group together so that creditors at different...
