Recovery ratings assess a lender's most likely ultimate and nominal recovery of principal in a payment default scenario. Standard&Poor's Ratings Services' recovery methodology focuses on the value investors would receive at the end of an insolvency process that encompasses a formalized emergence from insolvency and the conclusion of an informal, out-of-court restructuring. Our focus on "nominal" recovery indicates that our recovery projection is not discounted for the time value of money, primarily because market participants use a variety of discount rates. We believe that discounted recovery is better identified by the specific market participant that is best positioned to apply its preferred discount rate to our nominal recovery. Our approach is based on the fundamental analysis developed in
