... credit substitution in the form of either third- party credit enhancement or recourse to a financial asset or pool of assets separate from the credit risk of the bond issuer. Credit substitution should insulate the investor against default by the issuer, as well as any risks associated with its bankruptcy, and the mechanics of the transaction should not impede access to the support provider or assets. The events upon which a payment obligation under the bonds would arise are identified by Fitch Ratings through a review of the relevant legal documentation, and a determination is made as to whether those payment obligations are fully covered by the credit support or assets. These payment obligations can be regular debt service, redemptions, tender purchases or acceleration of the bonds. Properly structured, these bonds may be assigned Fitch long- and short-term ratings, which reflect the credit quality of the enhancement provider or the asset....
