...Recovery Estimates Determine Ratings: Fitch Ratings' instrument ratings for issuers rated `B+' and lower include an issuer-specific enterprise valuation (EV). The EV is a key driver of debt issue Recovery Rating (RR) estimates. Instrument ratings include an RR and are notched up or down from the Issue Default Rating (IDR) according to this RR. RR Drivers: Fitch deconstructs its EV analyses by separating the key valuation inputs (e.g. going concern [GC] EBITDA estimate and EV multiple appropriate for a reorganization scenario) in this report. Fitch also provides a breakdown of RRs by issue seniority, providing an analysis of the effects of capital structure composition on RRs for the debt instruments of 198 U.S. leveraged issuers and analyzes recovery analysis assumptions by sector. Growth of EV: Fitch's median EV estimate for RR purposes increased by a relatively large 15% for 26 publicly rated issuers in 2013. Growth was largely due to higher assumed GC EBITDA levels due to the effects...
