EthiFinance Ratings is launching a request for comments for its new Debt Investment Funds Rating (DIF) methodology and is inviting market participants to submit their comments and suggestions.
The Request for Comments period is starting on 22nd of July and is expected to last until 22nd of August. Unless specified otherwise, these comments will be considered as public. Comments should be submitted at the following email address: rfc@ethifinance.com. The final version is expected to be published and implemented in Q4 2024.
This methodology details the process by which EthiFinance Ratings (EFR) assigns ratings to the debt issued by either the master fund (MF) which holds the underlying loans, or its corresponding feeder fund which has an interest/investment in the MF in the form of a limited partner (LP). The final rating will result from the assessment of the Anchor Rating and the Modifiers. The analysis will be split into these two phases. While this methodology provides a largely prescriptive approach to evaluate the DIF’s credit quality, EthiFinance’s analytical process also includes judgments made by analysts. The analysts must also consider the specifics of each case as well as comparisons with similar instruments. Therefore, this methodology should be understood as a general framework that EthiFinance analysts use in tandem with their expertise to arrive at the final rating.
