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User Manual - Navigator Interactive for Corporates

1. BBB AA AA BBB AAA AAA BBB AA AA AAA AAA Country Ceiling BB BBB Economic Environment b bb bb CCC bbb bbb bbb bbb bbb bbb CCC CCC bbb bbb aa aa bbb bbb aa aa aa aa Navigator Interactive For Corporates v1 0 June 2015 Financial Market Development bb bb bb b a a bbb bb bb bbb bb bb bb bb bbb bbb bb bbb bbb bbb bbb aa aa aa aa aa aa Systemic Governance bb b b b aa bbb bb bb bbb bb O O O O O bbb bb bbb bbb bbb bbb aa aa aa aa aa aa aa aa 25 FitchRatings Ratings Navigator for Corporates Region Country FCIDR Country Economic Financial Market Systemic Ceiling Environment Development Governance Western Europe Norway AAA AAA aa aa aa Western Europe Switzerland AAA AAA aa aa aa Western Europe Austria AAA AAA aa aa aa Western Europe Sweden AAA AAA aa aa aa Western Europe Denmark AAA AAA aa aa aa Western Europe Netherlands AAA AAA aa aa aa Western Europe Finland AAA AAA aa aa aa Western Europe Belgium AA AAA aa aa aa Western Europe Greece B BB b bbb bbb Western Europe Cyprus B B CCC bb aa Western Europe Malta A AAA bbb bb aa Western Europe Portugal BB A bb bbb aa Western Europe Italy BBB AA bbb a bbb Source Fitch Data and Ratings as at 1 November 2014 Operating Environment Levels range from aa to b and exclude aaa and c values and are based on a broad qualitative
2. Problems with Download E Saving to the Export Version Save or Export with Edit Rights If you wish to carry out any further work on the Navigator once your session on the web based tool is over you must save export it to a portable Excel version the Excel Export version or EEV Use this where you wish to continue work on a Navigator over multiple sessions or to share an editable version with a colleague within your institution Save by Exporting to Excel PA Company BUSINESS Showcase PLC iv Aerospace amp Defence Ratings Navigator Management and Corporate Diversification Governance Sector Risk Profile Operating Environment Techn To create an Export version click on Save Export You will be asked which peers you wish to download as part of the export You can choose between the peers selected and visible in the web based tool or additional names from among all the peers held by Fitch in its database Be aware that clicking Select All will show a very large number of peers for most industries B ir v Select a new Company Export x C Export only the peers currently displayed on your screen FINANCIAL Export all the peers for sector In Create mode you MUST select both a country of incorporation and an Importance level for each factor or the Navigator will NOT export If the export does not follow automatically you may be asked to accept a pop u
3. minus Capital Expenditures Term Senior Unsecured Debt reflecting maintenance and Long Term Subordinated Debt improvement of existing assets Other Debt Equity Credit Lease Adjusted Total Adjusted Debt EBITDAR Debt EBITDAR Lease Adjusted FFO Gross Total Adjusted Debt FFO Gross Interest paid Leverage minus interest received Preferred Dividends Rental Expense Lease Adjusted FFO Net Total Adjusted Debt Readily FFO Gross Interest paid Leverage Available Cash minus interest received Preferred Dividends Rental Expense Lease Adjusted Gross Debt Total Adjusted Debt EBITDAR EBITDAR Lease Adjusted Net Total Adjusted Debt Readily EBITDAR Debt EBITDAR Available Cash Liquidity Liquidity ratio Available cash undrawn 12 month debt Maturities FCF portion of committed facilities if negative free cash flow if positive Net Debt CFO Capex Short Term Debt Long Term CFO Capex Senior Secured Debt Long Term Senior Unsecured Debt Long Term Subordinated Debt Other Debt Equity Credit Readily Available Cash Operating EBITDAR Margin Operating EBITDAR Margin Margin EBTDAR Revenues Pension Plan Funding a a contribution to pension Ko NNNM before contribution to plans pension plans 29 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Total Adjusted Total Adjusted Debt EBITDAR Debt Op
4. 0 2 1 12 1 1 6 4 5 2 6 8 so an FSO midpoint of b The values used to blend importance and Factor levels were reviewed against Fitch s portfolio of rated entities to measure for a broad line of good fit The above mixture of values was found to generate a generally good fit across sectors and rating categories as discussed in the Q amp A Section below The selection of High importance Factors was more significant for generating an FSO that mimicked the Fitch rating outcome at lower levels of rating Individual Subfactors and Factors may be overridden but the FSO itself cannot be 17 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates ll Navigator Interactive s Operating Environment The Purpose of the Operating Environment Factor Purpose The Operating Environment OE attempts to mimic graphically the impact on the issuer s profile of the wider context in which it operates irrespective of its sector and make any adjustments this implies to the Factor Summary Observation Setting OE in In the web tool version of Navigator Interactive we have left the choices for OE at the web tool the aggregated Subfactor level This will serve most uses of the tool for issuers in simplified markets where the combined effects of their operating environments do not exert a cases material influence over the credit profile You can pick the OE at a
5. TO RECOVER LOSS DAMAGES OR OTHER AMOUNTS FROM FITCH AND OR ITS LICENSORS UNDER ANY LEGAL THEORY THE LICENSEE AGREES THAT FITCH AND ITS LICENSORS TOTAL AGGREGATE LIABILITY IN CONNECTION WITH THIS AGREEMENT THE PROGRAM AND THE USE OF THE PROGRAM BY THE LICENSEE SHALL BE LIMITED TO US 1 000 Navigator Interactive For Corporates v1 0 June 2015 38
6. TO WORMS TROJAN HORSES CANCERS OR OTHER HARMFUL COMPONENTS COLLECTIVELY VIRUSES OR THAT ANY DEFECTS IN SUCH PROGRAM INFORMATION SERVICES SYSTEMS DATABASES OR MATERIALS WILL BE OR CAN BE CORRECTED FITCH DISCLAIMS ALL IMPLIED WARRANTIES INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY SUITABILITY AND FITNESS FOR A PARTICULAR PURPOSE AS WELL AS NON INFRINGEMENT THE PEER COMPARISON OBSERVATIONS FEATURED IN THE PROGRAM REFLECT A LIMITED NON EXCLUSIVE SELECTION OF TYPICAL CONSIDERATIONS RELEVANT TO THE INDUSTRIAL SECTOR AND OR REGION FOR WHICH THE NAVIGATOR TEMPLATE WAS CONSTRUCTED AS DESCRIBED IN THE NAVIGATOR COMPANION REPORT FOR THAT SECTOR AVAILABLE FROM THE FITCH WEBSITE AS SUCH THE PROGRAM AND OR THE INFORMATION IN ANY NAVIGATOR SNAPSHOT CANNOT BE USED TO ESTABLISH A RATING OR TO DETERMINE A RATING OUTLOOK AND SHOULD NOT BE RELIED UPON FOR THAT PURPOSE FITCH S NAVIGATOR SNAPSHOTS ARE CONSTRUCTED USING PROPRIETARY DATABASE OF PEER OBSERVATIONS AND JUDGMENTS WHICH EMPLOYS FITCH S OWN VIEWS AND ASSUMPTIONS ON OPERATING AND FINANCIAL PERFORMANCE THAT MAY NOT REFLECT THE VIEWS OR ASSUMPTIONS THAT THE LICENSEE OR ANY OTHER PERSON MAY HOLD AND FITCH S OWN DEFINITIONS OF FINANCIAL TERMS FOR EXAMPLE EBITDA DEBT OR FREE CASHFLOW THAT MAY DIFFER FROM THE LICENSEE S DEFINITIONS THE RESULTS OR OUTPUT FROM THE PROGRAM OBTAINED BY THE LICENSEE MAY VARY FROM RESULTS OR OUTPUT OBTAINED BY FITCH BASED ON DIFFERENCES IN US
7. a Factor Importance level from the drop down list This will increase or decrease the Factor s Importance importance in the FSO calculation setting You can proceed in this manner for all of the individual Factors and their respective Subfactors Factor levels will always recalculate move position and change colour on the Navigator chart in real time Checking Against Peers The comparable Factor and Importance levels for immediate peers are displayed below the Navigator chart and editing areas You can change the number and Peer Table identity of peers using the Edit Peers link immediately above the peer table Note that you can only select peers that have been entered using the same Navigator template ie in the same sector Peer Comparison Click Ratings to see underlying subfactors Edit Peers Entity Operating Managemen Diversifi Technology Market Po Backlog Profitabi Financial Financial General Dynamics Corporation aa B a B a 8H bbb E bbb E a E bbb E a E a E A Airbus Group NV aa B a a a E bbb W bbb W a E bbb W a a E A 1 See Factor and Factor Summary Observation Calculations The Importance level for the Operating Environment Factor is generated automatically by comparing the level of the FSO with that of the Operating Environment only if the OE is sufficiently lower than the FSO to affect the FSO calculation would the Importance level be High www fitchratings com Navigator Interact
8. a combination of a very high PFSO eg IG2 or IG3 with a low OE would be very unlikely as would be an issuer with an actual local currency rating in the A category in an environment broadly low speculative grade www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 23 FitchRatings Ratings Navigator for Corporates Country Operating Environment Levels Region Africa Africa Africa Africa Africa Africa Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Eastern Europe Eastern Europe Eastern Europe Eastern Europe Eastern Europe Eastern Europe Eastern Europe Eastern Europe Eastern Europe Eastern Europe www fitchratings com Country Tunisia Egypt Morocco Nigeria Angola South Africa Korea Australia Japan Hong Kong New Zealand Singapore Taiwan Indonesia China India Malaysia Mongolia Philippines Sri Lanka Thailand Vietnam Slovenia Czech Republic Slovakia Poland Hungary Romania Azerbaijan Bulgaria Serbia Macedonia FC IDR BB B BBB BB BB BBB AA AAA AA AA AAA A BBB A BBB B BBB BB BBB B BBB Country Ceiling BB B BBB BB BB AA AAA AA AAA AAA AAA AA BBB A BBB B BBB BB B AA AA AAA AA BBB BBB BBB BBB B BBB Econ
9. and a Peer table Printing a Navigator To print a Navigator Summary simply select your print dialogue using your normal Excel shortcuts e g Ctrl P The page is pre formatted for printing to PDF or hard copy on a single sheet 12 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Function 2 Choosing Factors to Edit Editing Picking a Factor to Edit is as simple as selecting the Factor from the pick list on the left hand side of the Summary and Navigation sheet and then clicking on the link to either edit the Factor Subfactors or select an Importance value This will take you to the EEV Editing page bb b b i i Select Edit Factor Here b ccc rd Importance igher HB Moderate Lower Select Factor Here seject Factor Diversification Tm Edit Factor S b Factors Change Importance Select Change Importance Here Operating Environment Management and Corporate Governance omparison Diversification Technology ersification Technology Market Position Backlog Profitability Market Position and Size es and Size Boeing Company The Financial Flexibility bbb J bbb ME bbb J a E Airbus GroupNV v a g ap app ap bbb BE a n Lockheed Martin Corporation aa B ap bb NN ap ap ap United Technologies Corporation v aa aa IN aa B a B a a B Function 3 Peer Selection All the Peers imported from the web tool are visible in
10. at all points in the cycle National blue chip with extensive relationships with domestic financial aa aa a bbb institutions or some access to top tier cross border banks and international financial markets Access more vulnerable to sudden interruption than in the above category Issuer with strong local access but limited access to international funding aa a bbb bb Issuer with average local access and very limited access to international a bbb bb b funding Issuer with qualified local access bb bb b b Source Fitch bb FitchRatings Ratings Navigator for Corporates Pre selected values in the Excel version Pre selected values in the Excel version Again in the EEV the horizontal axis of the matrix local market development will be a pre selection based on the already entered country of the issuer but which can be edited as necessary Subfactor Systemic Governance Governance risks affecting the home jurisdiction rather than issuer specific governance Each country s Systemic Governance level see tables below is based on a weighted average of the World Bank s Voice and Accountability Political Stability Ease of Doing Business Control of Corruption Government Effectiveness and Rule of Law indicators by increasing order of importance An issuer will generally simply receive the level of the country in which its headquarters are located In the EEV version of Navigator Interactive the Systemic Governance S
11. changes you would make in assessing the issuer s profile Your changes to the Subfactor will automatically update the overall Factor level visible on the far right The impact of your Subfactor choices on the overall Factor level will also be immediately visible on the Navigator chart www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Editing Factors Directly Changing Subfactors will change the overall Factor level but you can also override this calculation if you feel that one Subfactor is more dominant To override a Factor calculation use the overall Factor Midpoint pick list on the far right The position of the Factor will then change on the Navigator chart The Factor box will Over riding a now also be highlighted in red and the Subfactor Override box will be ticked To Factor sri return to automatic Factor calculation untick the Subfactor Override box and the Factor will return to automatic calculation for that Factor Choose a Factor Reset Button Override or Set Factor m Subfactor Override FFO Margin bbb 2 A TER EBIT Margin bb Th v Importance Higher v FCF Margin bbb 3 p r7 Volatility of Profitability bbb Volatility of profits in line with industry average Edit Subfactors Edit Importance Factor For all Factors other than Operating Environment you can also select
12. consideration of economic and financial system features including aggregated bank system viability ratings international governance scores and analyst judgement They are not sensitive to small moves in the level of sovereign rating or country ceiling 26 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Ill Financial Terms and Ratios Operating EBIT EBIT Net Non Operating amp Non Recurring Items Non recourse Income Associate Income Loss EBITDA EBIT Net Non Operating amp Non Recurring Items Non recourse Income Associate Income Loss Depreciation amp Amortization EBITDAR EBIT Net Non Operating amp Non Recurring Items Non recourse Income Associate Income Loss Depreciation amp Amortization Rental Expense Funds from Operation FFO FFO measure of the firm s cash flow after operating expenses cash payments for taxes interest and preferred dividends paid and after dividends paid to minority interests but before inflows or outflows related to working capital Fitch s computation subtracts or adds back an amount to exclude non core or non operational cash inflow or outflow Cash Flow from Operations Funds from Operations Change in Working Capital CFO Free Cash Flow FCF Cash Flow from Operations Capital Expenditures Common Dividends Total Non Operating amp Non Recurring Cash Flow before business acquisition business dive
13. example is from Chrome If you experience further problems please consult the Download Troubleshooter appendix below Pop up Blocker Flag A 1 Navigator Interactive for Co x Q f D ny vminternet q07 10513 NavigatorInteractiveWebApp nav 80506592 Aerospace 20 amp 20Defence XL The following pop ups were blocked on this page Fitch Rati ngs htipcorporate navigator toolfitchratinas com apiFileM Interactive Showcase PLC 1314442181xisx tes Always allow pop upsfrom corporate navigator toolfitehralings com Continue blocking pop ups Airbus Group NV iy Selecta new Company Manage pop up blocking gt erospace amp Defence Ratings Navigator a z BUSINESS PROFILE FINANCIAL PROFILE 5 Management Factor an Sector Risk Operating 9 Market Position Financial Financial Issuer Default a and Corporate Diversification Technology Backlog Profitability Summary g Profile Environment Govemance and Size Structure Flexibility Rating Observation Export Shortcut www fitchratings com Tip To export a final chart quickly in soft copy e g for use in Powerpoint presentations or e mails you can also simply use the image capture tool on your computer Snipping Tool in Windows Command Shift 4 in OS X to copy and paste the chart area for export to another document 10 Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Saving to Excel
14. o c 3 Bis ttv LO Microsoft bios Home hot Page Layout formim Det Beren View Add nr Fach Crecitock EMEA Home ban Page Layout Formda Data Reven Ma ies Fitch Creditboot EMEA i t E made ui 2 ma IE 2D view Side bry Side as a p km 4 N T 7 side j l mid be i it a a HW 73 spit JD View Side by Page Page reak Custom Ful Gridkens madres Zoom 100 Zoomto New Arrange Freeze x T de i Layout Preview views Screen Selection Widow Al Panes Wor Page Page bresk Custom Full Grimes Headings 2 100 Zoom e e Fr Drkbock View Zoom Low Prewen views Soten Seecon Windy l Panes FitehRati ngs Navigator Interactive for Corporates Fi h Ri i g ite atings Navigator Interactive for Corporates boxna ee Mata Gaang ring Fow Feweid Vana anne Deas Pre Deme ud Capo Paos ao Sras Pam anny Paseg tes Coreen Back ij VF eeneme Ensin Mn hoe ed gh Ve pred on mnn P DH parn 1 e Mad wi uh a Cut a avti jo vint Kwago La Summary amp Navigation Factor Details Editing Peer Details Summary and Navigation Page The Summary and Navigation page contains the Navigator chart the Factor selection box and the main Peer table It has three main functions Printing Editing Navigation and Peer Selection Tip Pressing Ctrl F1 will suppress the Excel command ribbon to give you more screen space to work with the tool Function 1 Printing Printing from here will give provide a Navigator chart an FSO
15. vminternet q07 10513 NavigatorInteractiveWebApp nav 80506592 Aerospace 20 amp 20Defence FitchRatings Airbus Group NV Sv Selecta new Company Manage pop up blocking Done p Aerospace amp Defence Ratings Navigator Continue blocking pop ups a a BUSINESS PROFILE FINANCIAL PROFILE 5 Management Factor Sector Risk Operating POE Market Position Financial Financial Issuer Default GF and Corporate Diversification Technology Backlog Profitability Summary f Profile Environment Govemance and Size Structure Flexibility Rating Observation www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Select Industry Sector Details Country TAM an BIP kv ENT E Issuer Name Here d Enter a Company Name BAY Using Create Mode CREATE Create Mode Create a New Navigator To create a Navigator chart for an entity for which no data is held by Fitch choose the Create a Navigator option on the home screen You will be asked to pick a Navigator sector template to use and then be asked to enter the name of the issuer Region Select a Coun Country IDR Selec a Country Last IDR Action Select a Country Last Action Date Select a Country Country G iling Select a Country Relevant Criteria amp References Select Country ngs Navigator Companion ology anagement Indus Ratings Navigator
16. which Navigator holds peer data and only in terms of the standardised calculations of relative importance Dominant single factors eg a liquidity crisis exchange controls transformational reputational or operational failures are difficult to replicate in any peer comparator tool as simplistic as the FSO In addition Navigator is designed to be as granular as practical in terms of industry sector but many companies will operate in smaller sub niches within a given sector or across multiple sectors or in sectors that vary in their perimeter to a greater or lesser extent from that included in the Navigator template Equally while we have published a number of regional or country specific Navigator templates to reflect the fact that different factors may have different significance for the same industry across different countries for many industries we have published a global template where these local differences are subject to elision Finally a material number of issuers rated by Fitch are supported or constrained by the ratings of related parties which are not represented in Navigator and therefore not represented in the FSO For some companies this deemed support or constraint can amount to multiple categories in difference versus a Standalone rating Is there any limit on the number of Factors can or should choose to be High Importance The tool does not limit the number of times that you can assign a certain level of Importanc
17. ER DATA AND INPUT THE FACTOR SUMMARY OBSERVATION THE FSO GENERATED BY THE USER WITHIN THE NAVIGATOR TOOL REPRESENTS A SIMPLE WEIGHTED AVERAGE OF PEER OBSERVATIONS AS SET FORTH IN THE ACCOMPANYING MANUALS AND USER GUIDES MADE AVAILABLE AS A CONVENIENCE FOR USERS OF THE FITCH WEBSITE THE FSO IS NOT A CREDIT RATING CREDIT RATINGS ARE DETERMINED AT ALL TIMES USING A COMMITTEE PROCESS BASED UPON ANALYTICAL JUDGMENTS AND UPON ALL INFORMATION IN RESPECT OF A RATED ISSUER AVAILABLE TO AND CONSIDERED TO BE RELEVANT BY FITCH AND AS SUCH THE FSO DOES NOT AND CAN NOT REPRESENT A RATING JUDGMENT OR SUBSTITUTE THEREFOR LIMITATIONS TO THE DETERMINATION OF AN FSO AND USAGE OF THE NAVIGATOR TOOL INCLUDE BUT ARE NOT LIMITED TO THE SELECTIVE NATURE OF THE OBSERVATION POINTS CONSIDERED THE RELATIVE INSENSITIVITY OF THE WEIGHTING PROCESS TO INDIVIDUALLY AND MULTIPLY DOMINANT FACTORS THE POINT IN TIME NATURE OF THE OBSERVATIONS AND ANY RESULTANT FSO GENERATED THEREFROM THE ABSENCE OF FACTORS REFLECTING THE INFLUENCE OF RELATED PARTIES WHERE STRONGER RELATED PARTIES SUPPORT CAN LEAD TO MATERIALLY HIGHER RATINGS AND WEAKER RELATED PARTIES INFLUENCE CAN LEAD TO MATERIALLY LOWER RATINGS THAN THE STANDALONE PROFILE OF THE ENTITY MAY OTHERWISE BE THE ABSENCE OF MODIFYING OUTLOOK OR WATCH STATUS THE SYNTHESIS OF THE IMPACT OF COUNTRY RISKS THROUGH THE MEDIUM OF THE BLENDED OPERATING ENVIRONMENT FACTOR DIFFERENCES IN RELATIVE OVERLAP BETWEEN AN ENTITY S OPE
18. FitchRatings Ratings Navigator for Corporates Interactive Version User Manual for Version 1 0 June 2015 FitchRatings Ratings Navigator for Corporates Navigator Interactive User Manual Navigator for Corporates is a graphical peer comparator and forms part of a series of similar tools being introduced across Fitch All Navigator information is correct at the date of publication which may pre date the latest rating actions All Navigator research and Navigator Interactive content for non financial corporates should be read in conjunction with Introducing Ratings Navigator for Corporates November 2014 and with the industry specific Navigator Companion report for the issuer s sector a full list of which is available at navigator fitchratings com More information on other Navigator products for Banks Insurance and Infrastructure are available at info fitchratings com ratingsnavigator Table of Contents What Navigator Interactive Does Using Navigator Interactive in the Web Tool Version Using Edit Mode Using Create Mode Saving to the Export Version Using the Excel Export Version Technical Background I Factor and Factor Summary Observation Calculations Il Navigator Interactive s Operating Environment Subfactor Economic Environment Subfactor Financial Access Subfactor Systemic Governance Impact of the Operating Environment on the FSO Ill Financial Terms and Ratios IV Download Troubleshooter V F
19. HAVE ANY LIABILITY IN CONTRACT STATUTE TORT SUCH AS NEGLIGENCE OR OTHERWISE IN RELATION TO THIS AGREEMENT THE PROGRAM OR THE USE OF THE PROGRAM BY THE LICENSEE b IN NO EVENT SHALL FITCH AND OR ITS LICENSORS BE LIABLE FOR A CONSEQUENTIAL SPECIAL INDIRECT INCIDENTAL PUNITIVE OR EXEMPLARY LOSS DAMAGE OR EXPENSE OF ANY KIND WHETHER CAUSED BY CONTRACTUAL BREACH NEGLIGENCE OR OTHERWISE EVEN IF KNOWN TO FITCH OR SUCH LICENSORS B DAMAGES RESULTING FROM ERRORS IN THE PROGRAM THE RESULTS OF THE USE OF THE PROGRAM LOSS OF DATA LOSS OF USE OR LOSS OF PROFITS OR VIRUSES C DAMAGES RESULTING FROM LOST TIME INACCURATE INPUT OR WORK DELAYS D DAMAGES RESULTING FROM A THIRD PARTY CLAIM THAT THE PROGRAM OR ANY PART THEREOF INFRINGES ANY INTELLECTUAL PROPERTY RIGHTS E ANY OTHER DAMAGES RESULTING FROM LICENSEE S ACCESS TO OR USE OF THE PROGRAM OR ITS RESULTS OR F ANY CLAIMS WHETHER IN CONTRACT OR TORT THAT AROSE PRIOR TO THE INSTITUTION OF SUIT THEREON AND c LICENSEE SHALL HAVE THE SOLE RESPONSIBILITY FOR ADEQUATE PROTECTION AND BACK UP OF ITS PROGRAMMING DATA OR EQUIPMENT USED IN CONNECTION WITH THE PROGRAM AND THAT FITCH SHALL HAVE NO LIABILITY FOR ANY LOSS OR DAMAGES RESULTING FROM LICENSEE S FAILURE TO DO SO THE PROVISIONS OF SECTION 1 8 SHALL APPLY TO THE FULLEST EXTENT OF THE LAW WHETHER IN CONTRACT STATUTE TORT SUCH AS NEGLIGENCE OR OTHERWISE PROVIDED THAT SHOULD THE LICENSEE BE ENTITLED NOTWITHSTANDING SECTION 1 8
20. Pages The EEV also allows you to review and export the detailed Factor and Subfactor level values in your tool for every peer you have imported We have provided two separate Peer Details pages 1 Peer Details with Levels reports the Subfactor level eg aa or bbb and its Importance level This Peer page will show the imported values for peers and the current values for the work you have carried out on that Navigator s subject issuer Competitive Market Position Competition Scale Position ER Orange S A bbb Ei a bbb a Orange S A Fitch bbb J a bbb a AT8T Inc ap a bbb a America Movil S A B de C V a Al a bb a Axtel S A B de C V b H b bb b BT Group plc E a a 2 Peer Details with Values reports the actual Description of each Subfactor e g forecasted range midpoint for FFO Gross Leverage of 4 0x Note that for ratios the descriptions refer to the midpoints of ranges using Fitch s forecasts rather than a precise forecast Scale PATAR Competitive Market Poston Competition Position Wary stong and sustainable market share in primary makeis Primary markets characbenzad by medum compebiwa 25 miton Orange SA bbbe N 30 w eneby andior moderate baniers bo entry Vary song and sustaingha market share in pnreary makaia Primary makes characlanzad by medum esenpatisa 25 militan Orange SA Fach bbb gp 95 wkentiby andibr moderate barriers bo entry Vary abung and sustainable market share in prresar
21. RATIONS AND THE INDUSTRY TEMPLATE APPLIED IN THE NAVIGATOR TOOL INCLUDING WHERE MULTIPLE NAVIGATOR TOOLS ARE PREPARED FOR ENTITIES ACTIVE IN MULTIPLE SECTORS MANAGEMENT DECISIONS AT THE ENTITY ON FINANCIAL POLICY INCLUDING BUT NOT LIMITED TO VOLUNTARY BANKRUPTCY ADMINISTRATION OR ANNOUNCEMENTS OF RESTRUCTURING FITCH MAY BE GRANTED ACCESS FROM TIME TO TIME TO CONFIDENTIAL INFORMATION WITH RESPECT TO CERTAIN ELEMENTS OF AN ISSUER S FORWARD PLANNING AND SUCH INFORMATION MAY BE OMITTED FROM RELEVANT NAVIGATOR SNAPSHOTS OR THE NAVIGATOR TOOL AT FITCH S SOLE DISCRETION EVEN IN CASES WHERE IT IS INCLUDED IN FITCH OWN INTERNAL RATING DELIBERATIONS Navigator Interactive For Corporates v1 0 June 2015 3 FitchRatings Ratings Navigator for Corporates 1 5 1 6 1 7 1 8 1 9 www fitchratings com IN ISSUING AND MAINTAINING THE NAVIGATOR TOOL FITCH RELIES ON FACTUAL INFORMATION IT RECEIVES FROM ISSUERS AND UNDERWRITERS AND FROM OTHER SOURCES FITCH BELIEVES TO BE CREDIBLE FITCH CONDUCTS A REASONABLE INVESTIGATION OF THE FACTUAL INFORMATION RELIED UPON BY IT INACCORDANCE WITH ITS RATINGS METHODOLOGY AND OBTAINS REASONABLE VERIFICATION OF THAT INFORMATION FROM INDEPENDENT SOURCES TO THE EXTENT SUCH SOURCES ARE AVAILABLE FOR A GIVEN SECURITY OR IN A GIVEN JURISDICTION THE MANNER OF FITCH S FACTUAL INVESTIGATION AND THE SCOPE OF THE THIRD PARTY VERIFICATION IT OBTAINS WILL VARY DEPENDING ON THE NATURE OF THE PARTICULAR ISSUER AND AN
22. S AS A RESULT DESPITE ANY VERIFICATION OF CURRENT FACTS THE VIEWS CONTAINED WITHIN NAVIGATOR SNAPSHOTS CAN BE AFFECTED BY FUTURE EVENTS OF CONDITIONS THAT WERE NOT ANTICIPATED AT THE TIME A NAVIGATOR SNAPSHOT WAS ISSUED OR ENTERED INTO THE NAVIGATOR TOOL THE PROGRAM IS DESIGNED TO PROVIDE EXPERIENCED LICENSEES WITH A STARTING POINT FOR COMPARING BUSINESS AND FINANCIAL RISKS ACROSS COMPANIES ALL ASSUMPTIONS AND FORMULA SHOULD BE REVIEWED BY THE LICENSEE BEFORE USE AS THEY MAY NOT REFLECT THE ASSUMPTIONS AND FORMULAE THAT THE LICENSEE WOULD HAVE CHOSEN TO USE AND OUTPUTS SHOULD BE CHECKED FOR MECHANICAL ACCURACY AND REASONABLENESS FITCH DOES NOT PROVIDE INVESTMENT ADVICE OF ANY SORT FITCH IS NOT RESPONSIBLE FOR ANY UNDERWRITING CREDIT LOAN PURCHASE STRATEGIC OR INVESTMENT DECISIONS IN LICENSING THIS PROGRAM TO YOU FITCH IS NOT MAKING ANY RECOMMENDATION OR SUGGESTION DIRECTLY OR INDIRECTLY TO YOU OR ANY OTHER PERSON TO BUY SELL MAKE OR HOLD ANY INVESTMENT LOAN OR SECURITY OR COMMENTING ON THE SUITABILITY OF ANY INVESTMENT LOAN OR SECURITY FOR LICENSEE OR OF UNDERTAKING ANY INVESTMENT STRATEGY WITH RESPECT TO ANY INVESTMENT LOAN OR SECURITY OR ANY ISSUER FITCH IS NOT LICENSEE S ADVISOR AND IS NOT PROVIDING TO LICENSEE OR ANY OTHER PERSON ANY INVESTMENT OR FINANCIAL ADVICE AS NO FEE IS BEING CHARGED FOR ACCESS TO AND USE OF THE PROGRAM THE LICENSEE AGREES THAT SUBJECT TO SECTION 1 9 a NEITHER FITCH OR ANY OF ITS LICENSORS SHALL
23. The current EE level for each country can be found below Issuer Economic Environment Economic Environment Level of the Country Countries Where the Majority of the Issuer s Assets are Located bbb or Economic Environment of Country Countries where Economic Value is Created above bb Widely diversified global footprint or more than 3 4 exposure to countries with aa a aa or a Economic Environments ie western Europe US Canada Japan Korea Australia NZ Diversified footprint with majority of countries benefiting from an Economic a bbb Environment of a same as above Taiwan Chile Poland Czech Republic Less than 25 exposure to countries with bb or lower Economic Environment Category applicable to sellers of commodities in world markets Some diversification and more than 50 exposure to countries with an bbb bbb Economic Environment of bbb or above same as above IG Latin America and Eastern European EU members Less than 25 exposure on countries with b Economic Environment More than 50 exposure to countries with an economic environment of bb or bb bb less Less than 25 exposure on countries with a b economic environment As above with limited diversification and or more than 25 exposure on bb b countries with b Economic Environment More than 50 exposure to countries with b or lower Economic Environment b b Source Fitch www fitchratings com Navigator Interactive For Corporates v1 0 Ju
24. Y RELEVANT SECURITY THE REQUIREMENTS AND PRACTICES IN THE JURISDICTION IN WHICH ANY RELEVANT SECURITY IS OFFERED AND SOLD AND OR THE ISSUER IS LOCATED THE AVAILABILITY AND NATURE OF RELEVANT PUBLIC INFORMATION ACCESS TO THE MANAGEMENT OF THE ISSUER AND ITS ADVISERS THE AVAILABILITY OF PRE EXISTING THIRD PARTY VERIFICATIONS SUCH AS AUDIT REPORTS AGREED UPON PROCEDURE LETTERS APPRAISALS ACTUARIAL REPORTS ENGINEERING REPORTS LEGAL OPINIONS AND OTHER REPORTS PROVIDED BY THIRD PARTIES THE AVAILABILITY OF INDEPENDENT AND COMPETENT THIRD PARTY VERIFICATION SOURCES WITH RESPECT TO ANY RELEVANT SECURITY OR IN THE PARTICULAR JURISDICTION OF THE ISSUER AND A VARIETY OF OTHER FACTORS USERS OF FITCH S FORECASTS SHOULD UNDERSTAND THAT NEITHER AN ENHANCED FACTUAL INVESTIGATION NOR ANY THIRD PARTY VERIFICATION CAN ENSURE THAT ALL OF THE INFORMATION THAT FITCH RELIES ON IN CONNECTION WITH A NAVIGATOR SNAPSHOT WILL BE ACCURATE AND COMPLETE ULTIMATELY THE ISSUER AND ITS ADVISERS ARE RESPONSIBLE FOR THE ACCURACY OF THE INFORMATION THEY PROVIDE TO FITCH AND TO THE MARKET IN OFFERING DOCUMENTS AND OTHER REPORTS IN ISSUING ITS NAVIGATOR SNAPSHOTS FITCH MUST RELY ON THE WORK OF EXPERTS INCLUDING INDEPENDENT AUDITORS WITH RESPECT TO FINANCIAL STATEMENTS AND ATTORNEYS WITH RESPECT TO LEGAL AND TAX MATTERS FURTHER NAVIGATOR SNAPSHOTS ARE INHERENTLY FORWARD LOOKING AND EMBODY ASSUMPTIONS AND PREDICTIONS ABOUT FUTURE EVENTS THAT BY THEIR NATURE CANNOT BE VERIFIED AS FACT
25. actor Profitability Y Subfactor Override V Revert to Imported Version pi 88 Factor Midpoint bbb EBIT Margin bb 17 LA l Importance Higher v FCF Margin bbb 336 Volatility of Profitability bbb Volatility of profits in line with industry average 2 Entering this data will permit you to save export the Navigator content to Excel in full Browser Security Settings We have taken every precaution to ensure the tool works in a wide variety of desktop or laptop based based user systems and currently does not require a research registration or subscription arrangement with Fitch Your browser security settings may nonetheless be subject to restrictions managed by your company s network administrator For most networks the below instructions will ensure you are able to successfully export the Excel version of Navigator Interactive If these steps do not resolve your export problems please contact your company s network administrator attaching a copy of this User Manual to your request for their information If you still require further help please contact your nearest Fitch representative listed on the online directory at navigator fitchratings com navigator interactive htm Please note that the current generation of tablets and smartphones generally do not support export functionality 31 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Nav
26. all levels of individual coverage for which no other sector Navigator has been designed It is useful as a broad benchmark but unsurprisingly has one of the lowest levels of overlap between FSO and rating level Where can I find the template data underlying each industry s Navigator Users should use Navigator Interactive in conjunction with the full range of Navigator resources offered by Fitch For each of the more than 40 sector based Navigator templates Fitch publishes both a Companion report and a Reference File The Companion Report is a narrative description of the analysis that lies behind the selection of Factors and Subfactors for each sector and a discussion of which rating levels align with which Subfactor values The Reference File is an Excel based workbook that contains all the Subfactor values for each template in one location As examples you can review the Companion report and Reference File for the Generic Rating Navigator A full list of all current Navigator Companion reports and associated Reference Files can be found at navigator fitchratings com 36 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Fitch Ratings Inc Navigator Interactive Tool Licence Terms and Conditions and Disclaimer 1 1 1 2 1 3 1 4 www fitchratings com Copyright 2015 by Fitch Ratings Inc a Delaware corporation whose corporate headqua
27. arch report both for enter their own observations for issuers outside the individual issuers and in compendiums by industry database into sector templates and region Data can be exported into Excel How many companies will appear in Navigator Will Fitch also publish Navigators for unrated companies For the static Navigator research product we expect to publish Navigator charts for the vast majority of our rated issuers other than in selected cases where ratings are driven almost entirely by external support and a standalone Navigator reading would be misleading Over time we will also offer Navigator content on a selection of unrated issuers Does Navigator change Fitch s criteria or rating process The observations inside Navigator do not represent any change to the criteria Fitch has established over many years Instead Navigator adds both more granularity and more cross border comparability to our peer comparisons showing clearly how individual issuers compare to rated peers on strategy and expected performance Will Navigator Interactive for Corporates generate an estimated rating for unrated companies No The relative influence of different factors on an issuer s credit rating is not a pre programmable setting it varies over time and between entities for good reason No simple tool can capture all the possible factors that can affect a rating Pre setting a weighting ignores the potentially critical impact that non standard
28. ated peers save and export Navigator work on a secure and fully confidential basis to a fully functional local Excel version Navigator is not a criteria tool but pulls together commonly considered factors for key industrial sectors and uses them to highlight strengths and weaknesses of issuer profiles Navigator Interactive also introduces the Factor Summary Observation FSO an electronic summary of those observations Many other considerations are included in the process of creating an actual credit rating for more information on the FSO consult the Technical Background section of this document Users are advised to familiarise themselves with the brief Frequently Asked Questions section in this document before working with the tool Navigator research reports are available as part of our premium research subscription within Fitch Research Navigator Interactive will for a trial period be open to professional users with exports to Excel at navigator fitchratings com www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Using Navigator Interactive in the Web Tool Version Navigator Interactive has two modes EDIT mode for issuers already inside the tool and CREATE mode which allows you to create your own Navigator from scratch FitchRatings Navigator Interactive for Corporates Navigator Interactive for Corporates A Graphical comparator tool co
29. ator chart and the FSO Summary Chart Updates in Real Time FitchRatings Navigator Interactive for Corporates Sector Risk Operating Management Diversification Technology Market Backlog Profitabiti Financial Financial Factor Issuer Default Profile Environment and Corporate Position and Structure Flexibility Summary Rating Governance Size Obseryation 333 AAA aa AA aa AA aa AA a A a Ad a A bbb BBB bbb BBB bbb BBB bb BB bb BB bb BB b B Importance b B kl Higher b B B Moderate ece rd CCC RD a Lower Edit Factor Directly Here Edit Importance Level Here Diversification Back Factor Level Override Diversification No Override Active Select Factor Importance Moderate Revenue base well spread out geographically Geographic Diversification Close to 50 50 split between commercial aerospace and defense Calculated Edit Subfactors Here mmercial vs Defense Split a Factor Midpoint Active in a large number of programs ProgramiProduct Diversification a PT a Moderate aftermarket presence Aftermarket Presence bbb Current Factor Midpoint calculated Customer Concentration Mon Prime Suppliers Note that each Factor must have a value and each Factor must also be assigned an Importance level before an FSO will be generated 14 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Peer Details
30. been entered in the same Navigator template Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Reset Saving to Excel Problems with Download If you want to review the detailed Subfactors behind any of the peer data for example the Subfactors behind a peer s Financial Flexibility Factor click on the Factor level within the peer table Reset Clicking on Revert to Imported Version in Create mode will take your Navigator back to the blank sector template with which you started and erase all your entries Saving Your Work For confidentiality reasons your work on Navigator can only be saved into a local version of Navigator generated in Excel see the Excel Export version below You can continue to edit and review all your work and generate Navigator charts on this Export version but you cannot re import data to the web based Navigator tool at any stage Save by Exporting to Excel Showcase PLC Amr i NAM pany Aerospace amp Defence Ratings Navigator BUSINESS Management Sector Risk Operating and Corporate Diversification Techn Governance Profile Environment In Create mode you MUST select both a country of incorporation and an Importance level for each factor or the Navigator will NOT export If the export does not follow automatically you may be asked to accept a pop up This is easily done on most browsers the below
31. d Corporate Operati overnance Profil BUSINESS Management Industry and Corporate Operational Governance Profile Sector Risk Operating Quality o Profile Environment Porth uoneuuoju Jenss EUONIPPY 4 introducing Ratings Navigators for Corporates Select Factor and Subfactor You MUST enter a country for the issuer by clicking on the Additional Issuer Information tab to the left and select a country You will find the Navigator easier to use if you choose the functional country of incorporation If you do not enter a country the Navigator will not export to Excel Creating Using Subfactors As with Edit mode you should select a Factor from the drop down list and set each Subfactor to match your view of the issuer No bars will appear on the Navigator chart until you have made your first entry for each Factor As soon as Navigator has calculated a Factor that Factor s chart bar will be generated and placed on the chart The final FSO will not be generated until all Factors have been entered after that point it will recalculate and move in real time as with Edit mode 3 For example you will have fewer adjustments to make to the Operating Environment factor if you enter for example a substantively Brazilian Russian or Chinese company registered in Luxembourg or the Cayman Islands as Brazilian Russian or Chinese within the Navigator www fitchratings com Navigator Interactive For Corporat
32. e to individual Factors for a given issuer In practice our observation from published Navigators would be that two to three factors would be a reasonable number to assign as High Importance Which factors should I pick to be Low Importance and High Importance The selection of Importance levels is one of a number of areas where users can introduce their own credit views into the tool they should experiment to see what combination best reflects their own concerns One useful guideline is provided in the colour coded peer table directly below the editing area where you can instantly see which Factors have been assigned Low Moderate and High importance for immediate peers by Fitch s own analysts 35 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Can compare issuer data from issuers entered using different Navigator sector templates No Attempting to compress all issuers into a universal set of credit factors loses a tremendous amount of signal in the process As a result we have endeavoured to tailor the Navigator templates as much as possible to the industry of the issuer which means that the columns while identical in number and consistently split between Business and Financial Risks are not comparable from one industry Navigator to another The Generic Navigator template is designed for sectors with very sm
33. er selections for the two remaining sub topics Economic Environment Where Value Created and Issuers Own Funding Characteristics to ensure that an appropriate OE is calculated 18 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates How the OE Works The OE is a blend of three subfactors Economic Environment Financial Access and Systemic Governance When Systemic Governance is the weakest of the three it is likely to be given a higher relative importance Individual countries Economic Environment Financial Market Development and Systemic Governance levels referred to in the following sections can be found below Subfactor Economic Environment Key macro variables affecting corporates in a given economy or range of economies The Economic Environment EE incorporates Fitch s views on key macro variables that may affect a corporate s fundamental credit strengths such as the stage of economic development economic growth expectations and the relative stability or volatility of the economy as a whole Issuers operating solely within the same country will receive a factor equal to the country s EE The assessment will take a blended view of the OE for corporates that operate in various geographies Rather than impose a complicated case by case calculation for what is often a dynamic value this blend follows the simplified matrix below
34. erating EBITDAR Total Adjusted Debt Proved Total Adjusted Debt SEC Proven Reserves Reserves boe Total Debt Adjusted EBITDA Short Term Debt Long Term Operating EBIT Depreciation Senior Secured Debt Long amp Amortization Amortization Term Senior Unsecured Debt of Goodwill amp Intangibles and Long Term Subordinated Debt adjusting for other non cash Other Debt Equity Credit items 30 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates IV Downloads Troubleshooter In most cases a failed download will be caused by a failure in Create mode to enter either 1 the country of incorporation using the fly out information tab on the left or Showcase PLC Consumer Ratings Navigator Ehaunaen Dir AY Sector Details Country Sector Risk Operating Profile Environment anagement Indusi d Corporate Operati overnance Profil Region Select a Coun Country IDR Selec a Country Last IDR Action Select a Country Last Action Date Select a Country uoneuuoju Jenss EUONIPPY F Country G iling Select a Country UONRWJOJU Jenss EUONIPPY 4 Relevant Criteria amp References ings Navigator Companion Select Country bibo introgucing Kaungs Navigators for Corporates Fly out Tab 2 an Importance level for each overall Factor Edit Importance Factor m J FFO Margin bbb 2 Select a F
35. es v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Over riding a Factor Operating Environment shortcut for developed markets Importance setting Peer Table www fitchratings com Creating Using Factors Only For faster entry you can enter and edit Navigator at the overall Factor level instead As in Edit mode use the Factor Midpoint pick list on the far right You can also use this pick list to override any Subfactors you have entered The position of the Factor will then change on the Navigator chart as will the level used for the Factor Summary Observation calculation The Factor box will also be highlighted in red and the Subfactor Override box will be ticked To return to automatic Factor calculation untick the Subfactor Override box and the Factor will return to automatic calculation Operating Environment Creating an Operating Environment level requires some preparatory work to define the three Subfactors Economic Environment Financial Access and Systemic Governance More detail is contained in Technical Background section 2 Operating Environment Alternatively a simplified entry approach is available once the Navigator has been saved to Excel see Using Navigator in the Excel Export Version As a shortcut users comparing issuers in predominantly developed markets can opt to simply set the OE at aa using Override We recommend that users compari
36. g Term Subordinated Debt Other Debt Off Balance Sheet Debt Equity Credit EBIT Margin Ll EE Operating EBIT including Consolidated revenues financial services operations EBIT Margin Industrial Operating EBIT excluding Industrial operation revenues ke la services operations aa Interest EBITDAR Gross Interest Expense Rent a Rent Lil Adjusted Debt Free Cash Flow Short Term Debt Long Term Senior Secured Debt Long Term Senior Unsecured Debt Long Term Subordinated Debt Other Debt Off Balance Sheet Debt Equity Credit FFO Adjusted Leverage Total Adjusted Debt FFO Gross Interest paid minus interest received Preferred Dividends Rental Expense FFO Adjusted Net Leverage Total Adjusted Debt Readily FFO Gross Interest paid Available Cash minus interest received Preferred Dividends Rental Expense www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 28 FitchRatings Ratings Navigator for Corporates FFO Debt Service Cover FFO Gross Interest paid Gross Interest Expense minus interest received Preferred Dividends Current Preferred Dividends Rental Debt Maturities Expense FFO Fixed Charge Cover FFO Gross Interest paid Gross Interest Expense minus interest received Preferred Dividends Rental Preferred Dividends Rental Expense Expense Gross Debt CFO Capex Short Term Debt Long Term Cash Flow from Operations Senior Secured Debt Long
37. he OE For example the PFSO of fictional Russian entity OAO Showcase is calculated as 1G8 and therefore has a midpoint of bbb The three components of the OE are assessed as set out below e Economic Environment bbb as OAO Showcase is based in Russia but benefits from some diversification and more than 5096 exposure to countries with an economic environment of bbb or above e Financial Access Score bbb as OAO Showcase is a national blue chip with access to international funding based in a bb local financial market e Systemic Governance b as OAO Showcase is based in Russia The blended assessment of the OE is bb due to the higher weight given to the low Systemic Governance score a simple average would have given a result of bb Using the table above the OE of bb lowers the PFSO of IG8 with a midpoint of bbb to a final FSO of XOY with a midpoint of bbb for OAO Showcase To ensure a simple standalone measure the OE does not include the impact of the issuer s country ceiling the transfer amp convertibility risk related to an issuer s sovereign jurisdiction which usually caps a foreign currency rating above the rating of the sovereign full criteria can be accessed here and country ceilings for each country can be accessed here The FSO is therefore most comparable to a local currency assessment i e one that excludes transfer amp convertibility risk In practice
38. igator for Corporates To unblock an Excel download in Internet Explorer fields may vary across versions Click the Tools button Pop blocker Turn off Pop Blocker 2 Click on the Security tab select Trusted Sites Sites and add https corporate navigator tool fitchratings com Z index to the safe zone 3 Under the Security Settings Internet Zone window scroll down to Downloads under Automatic prompting for file downloads click Enable and then click OK twice ER dh Page Safety Tools a Diagnose Connection Problems Internet Options x B Pop up Blocker Select a zone to view or change security settings Q amp Internet Local intranet Trusted sites 2j Manage Add ons Ek Work Offline Fi Compatibility View a sites aa pu Doss A Full Screen Fil This zone contains websites that you Toolbars k IDE MK ee your computer or vn d Tru tel sites Xx ile Developer Tools Fiz Sa You can add and remove websites from this zone All websites in Suggested Sites this zone will use the zone s security settings OneNote Linked Notes Send to OneNote Add this website to the zone z R hips Ncorporale navigafor iool fichrafings com Windex Internet Options P add Internet Options http epp eurostat ec europa eu Las La ma Local intranet Trusted sites Restricted sites sit This zone is for I
39. ised factors can have The level of influence also changes over time and to some extent across regions Determining all factors not just the commonly considered ones and weighing their relative importance at any given time is the core of the work done by our rating committees 34 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates What is the Factor Summary Observation Recognising from feedback that users would like a simplified summary of how influences interact Navigator Interactive includes a Factor Summary Observation FSO The FSO is an evenly weighted sum of the observations compared in the Navigator for that industry Users can also adjust the relative importance at the factor level to see what impact this may have on the overall profile of the issuer Navigator will compute and present an FSO as a banded range of rating levels How often does the FSO coincide with the Fitch rating We reviewed the levels of FSO generated for issuers that also have a Fitch rating as part of the process of setting the standardised calculations for Factor and FSO generation The level of overlap varied but the overall level of overlap was upwards of 75 in our initial review What are the biggest limitations in the expressive power of the FSO Users should recall that the FSO is not designed to be a synthetic rating It only considers the narrow range of topics for
40. ive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates If you want to review the detailed Subfactors behind any of the peer data for example the Subfactors behind a peer s Financial Flexibility Factor click on the Factor square within the peer table Click for Subfactor detail Peer Comparison Click Ratings to see underlying subfactors Edit Peers Entity Operating Managemen Competiti Profitabi Financial Financial IDR AT amp T Inc a E a BH a n a Hp a E a pH A America Movil S A B de C V bbb a a B a B bbb ME a B a E Axtel S A B de C V bb NW bbb M b 6 bb m bb E bb ua BT Group pic a N a g bbb NW a B a pH aa MH Bharti Airtel Limited bbb N bb N bb aJ bbb N a E bbb N CCO Holdings LLC kalala bi boto Miele m Cablevision Systems Corporation Bharti Airtel Limited x CenturyLink Inc 7 z s TEL China Mobile Limited Diversification Description China Telecom Corporation Limited Serving Platon bobb Deermtes several samica platforms 1n primary markets bat ana 15 dominant Factor Migpoimd Dib Diversification Cogeco Cable Inc Geographic D ensiticatian bbb Average gecoraphic diversification importance Moderate Resetting to Original Inputs If you wish to return to the originally downloaded Navigator inputs set by Fitch analysts you can click the Revert to Imported Version at any time this will reset all factors and peers to their originally impor
41. l score bbb 12 b 6 bb 9 could be computed as calculation 1 1 12 1 6 1 9 3 8 3 so an overall factor midpoint of bb Example 2 Three subfactors a7bbb b with the subfactor elements converted to a numerical score a 15 bbb 12 b 6 would be computed as 1 1 15 1 12 1 6 3 9 5 so an overall factor midpoint of bb Note that Subfactors are entered at an unmodified category level eg bbb rather than bbb or bbb As a result although the calculation to arrive at an individual Factor level generates a notch specific Factor mid point the overall Factor is expressed in the Navigator chart as a band of three notches 16 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Factor to FSO Factors are then combined to form an overall Factor Summary Observation FSO calculation using the following formula introducing the Importance flags Example 1 Three Factors bbb High b Moderate b Low with the Factor elements converted to a numerical score bbb 12 b 7 b 6 could be computed as 1 1 12 4 1 7 1 1 6 0 2 5 2 10 2 so an FSO midpoint of bb Example 2 Three subfactors a Low bbb Moderate b High with the subfactor elements converted to a numerical score a 14 bbb 12 b 6 would be computed as 1 1 14
42. mbining observations for sector business and financial risk across Fitch s global rating portfolio of non financial corporates Fully interactive with exports to Excel and PDF Explore and edit an exisiting interactive Navigator snapshot OR Create a new Navigator from your own inputs using a sector from Fitch s corporate coverage specific or generic Navigator template Search Companies by Name Clear Create a New Navigator Using Edit Mode EDIT Explore and Edit Mode Edit an Existing Navigator If you would like to explore the relative strengths and weaknesses of an issuer on its existing profile or run scenarios of a change in profile choose the Edit mode Select Issuer Edit mode will download the Navigator sector template plus the individual Navigator inputs for the issuer you have chosen In some cases issuers whose activities span more than one sector will have more than one set of Navigator data If this is the case you will be asked to choose which Navigator template you would like to review for that issuer Editing Inputs Once the Navigator data has loaded you can edit the inputs either at the Factor level or at the more detailed Subfactor level Select Factor and Subfactor Editing Subfactors First choose the Factor you would like to work on from the drop down list This will pull up the relevant Subfactors each with their own pick list by rating level Here you can change the Subfactors to reflect the
43. n Privacy Edit Cut Copy Paste 3 Content settings Clear browsing data Save page as Cirl 5 Find CHALE Google Chrome may use web services to improve you i services Learn more Print Ctrl P Zoom 100 des History Ctr H Ctrl Pop ups O Allow all sites to show pop ups 8 Do not allow any site to show pop ups recommended Manage exceptions Cirl 5hift Q Pop up exceptions Hostname pattern Behavior mrm10 Allow Learn mare a Done 33 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates V Frequently Asked Questions How do Navigator and Navigator Interactive differ Navigator for Corporates Navigator Interactive A snapshot summary charting an issuer s profile A web tool charting an issuer s profile against the against the peer observations expectations for its peer observations for its industry at different rating industry at different rating category levels category levels A graphical summary of the impact of operating For rated issuers users can adjust the level of environment including country risks and access to importance they associate with different features of capital for each issuer the issuer s profile For unrated issuers users can review a selection of pre charted unrated issuers or Available as a printed rese
44. ne 2015 b or lower bbb bb bb 19 FitchRatings Ratings Navigator for Corporates Pre selected values in the Excel version Definition of value Components of Financial Access www fitchratings com The EE Subfactor of an issuer is assessed by looking at both e Subtopic 1 the profile of the countries where the economic value is created by the issuer ie the destination of the issuer s products and e Subtopic 2 the country or countries where its assets are located ie where the products or services are originated In the EEV version of Navigator Interactive the horizontal axis of the matrix the asset location is pre selected based on the country already selected for that issuer as part of its identifier information You can nonetheless edit this selection for example if a Canadian registered oil company operates fields predominantly located in Africa The notion of economic value encompasses both revenue and profit the relative importance of which will vary case by case For example an entity s trading business generating high revenues but minimal profits may not be given much weight in the analysis Conversely a large but non profitable division in the core business of an issuer is relevant even though it is making little profit The location of assets in weak economic environments can pull down the EE level of an issuer For example the likelihood of major disruption to the production process d
45. ng issuers active in emerging markets view the Appendix below before considering whether or not to override either in the web tool or the Excel export Selecting Importance For all Factors other than Operating Environment you MUST also select a Factor Importance level from the drop down list This will increase or decrease the Factor s importance in the FSO calculation The Importance level for the Operating Environment Factor is generated automatically by comparing the level of the FSO with that of the Operating Environment only if the OE is sufficiently lower than the FSO to affect the FSO calculation would the Importance level be High The colour of the OE bar will indicate automatically whether it is affecting the FSO red for High close to the FSO dark blue for Moderate or irrelevant for the FSO light blue for Low You can proceed in this manner for all Factors and their respective Subfactors Factor levels will recalculate move position and change colour on the Navigator chart in real time If you do not select Importance levels on each Navigator will not export to Excel Checking Against Peers To help you select relevant Factor and Importance levels the comparable Factor and Importance levels for immediate peers are displayed below the Navigator chart and editing areas You can change the number and identity of peers using the Edit Peers link immediately above the peer table You can only select peers that have
46. nmeccanica Sp gi bir W uh o bb B bb W gt m bb E b E bbb B BB General Dynamics Comorabon LAM aa NN bb aH xa H a E bb E am a nu xa B A Raytheon Company a o a b NW MB a g bb g E bob E Fie Racka Collins Inc ma a HN iff if beet M mb HN 3 t Ww E Peer Table www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates What Navigator Interactive Does Ratings Navigator for Corporates offers the next level in credit transparency Our Navigator snapshots already provide a visual overview of key quantitative and qualitative factors in issuers credit profiles We have extended the use of this data to Navigator Interactive a fully interactive graphical peer comparator tool combining observations for sector country business and financial risks across Fitch s global rating portfolio of non financial corporates In Navigator Interactive the user can download Navigator charts and Factor level peer data into an interactive web tool for Fitch rated corporates and for a selection of unrated issuers edit the profile of existing issuers in Navigator to reflect the user s own view of an issuer s profile including hypothetical changes to the issuer s business and financial risks create a new Navigator chart for an unrated issuer using one of more than 40 industry templates generate a Factor Summary Observation FSO to compare unrated and r
47. nt of the final FSO may be lowered by up to two notches from the midpoint of the PFSO The table below shows the exact influence of the OE on a given PFSO This process is calculated automatically so the FSO displayed in Navigator Interactive always includes the impact of the operating environment Operating Environment Rating Impact PFSO and Midpoint Level OE blended b b b bb bb bb bbb Bbb bbb a or above Source Fitch www fitchratings com SG15 SG14 SG13 SG12 SG11 X010 XO9 IG8 IG7 IG6 IG5 IG4 IG3 b b b bb bb bb bbb bbb bbb a a a aa b b b b bb bb b b b b bb bb b b b b bb bb b b b bb bb bb b b b bb bb bb b b b bb bb bb b b b bb bb bb bbb bbb bbb a a a a b b b bb bb bb bbb bbb bbb a a a a b b b bb bb bb bbb bbb bbb a a a a b b b bb bb bb bbb bbb bbb a a a aa Navigator Interactive For Corporates v1 0 June 2015 22 FitchRatings Ratings Navigator for Corporates Worked example OAO Showcase OE does not include country ceiling cap As general examples e An OE in the a or above category has no impact on the FSO e An OE in the bbb category has a limited impact and only affects issuers for which the midpoint of the PFSO is four notches higher than the OE level e The negative impact of an OE in the b rating category or at bb starts affecting issuers where the midpoint of the PFSO is only one notch above t
48. nternet websites Lej except those listed in trusted and Script ActiveX controls marked safe for scripting Security level for this zone Disable Allowed levels for this zone Medium to High Appropriate for most websites rn EE potentially unsafe Automatic prompting for file downloads C Disable OJ Enable ja File download Reset all zones ko default level Some settings are managed by your system administrator 32 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates To unblock a download in Google Chrome In the top right corner of Chrome click the Chrome menu gt Settings At the bottom left side of the page click Show Advanced Settings Scroll down to the Privacy section and click the Content Settings button Under Content Settings scroll down to the Pop ups section click Manage Exceptions Paste https corporate navigator tool fitchratings com index into the Pop up exceptions field and click Done Scroll down to the Automatic Downloads section and verify that prompting is enabled 7 Click Done at the bottom of the page to save your settings de AN e 1 e Default browser New tab Ctr T The default browser is currently Google Chrome New window Ctrl N New incognito window Ctri Shift N Bookmarks b ri Show advanced settings Recent Tabs EP m
49. omic Environment bb bb bb b bb bbb aa bb bbb bb bbb bbb bb bbb bb bbb bbb bbb bb bb bb bb bb Navigator Interactive For Corporates v1 0 June 2015 Financial Market Development bb bb bbb bb aa aa aa aa bb bb bbb bb bb bb bb bbb bbb bbb bb bb bb Systemic Governance bb b bb b b bbb aa aa aa aa aa aa bb bb bbb bb bbb bbb bb 24 FitchRatings Ratings Navigator for Corporates Region Eastern Europe Eastern Europe Eastern Europe Eastern Europe Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Middle East Middle East Middle East Middle East Middle East Middle East Middle East North America North America Western Europe Western Europe Western Europe Western Europe Western Europe Western Europe www fitchratings com Country Georgia Russia Kazakhstan Ukraine Chile Brazil Mexico Peru Panama Colombia Uruguay Argentina Venezuela Ecuador El Salvador Guatemala Costa Rica Dominican Republic Jamaica Kuwait Israel Lebanon Bahrain Abu Dhabi Saudi Arabia Turkey Canada United States Ireland Spain France United Kingdom Germany Luxembourg FC IDR BB BBB BBB CCC A BBB BBB BBB BBB BBB BBB RD BB BB BB
50. p This is easily done on most browsers the below example is from Chrome If you experience further problems please consult the Download Troubleshooter appendix below Pop up Blocker Flag y Navigator Interactive for Cc x Q DO ny vminternet q07 10513 NavigatorInteractiveWebApp nav 80506592 Aerospace962089620Defence xw The following pop ups were blocked on this paga Fitch Ratings httpcorporate navigator toolfitchratinas comapiFileM_ Interactive Showcase PLC 1314442181xisx tes Airbus Group NV p erospace amp Defence Ratings Navigator anssj BUON P www fitchratings com Sector Risk Profile Always allow pop upsfrom corporate navigator tool fitchratings com Continue blocking pop ups Manage pop up blocking Done Bid Select a new Company BUSINESS PROFILE FINANCIAL PROFILE Management Factor EM and Corporate Diversification Technology M Backlog Profitability c gii E Summary Governance Observation 11 Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Using the Excel Export Version You can edit the Excel Export Version EEV in broadly the same way as the web based tool Excel Export Version Structure The EEV consist of five sheets the Summary and Navigation page the Factor Details editing page two sets of Peer Details pages and a Help page 2 dn J4 EEV LO Microsoft Exot Zia
51. requently Asked Questions www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Factors FitchRatings Navigator Interactive for Corporates Factor Summary Showcase PLC Sid Selecta new Company Observation Aerospace amp Defence Ratings Navigator BUSINESS PROFILE FINANCIAL PROFILE Management Factor Sector Risk Operating Market Position Financial Financial issuer Default Profile Essonnen and Diversification Technology end Size Backlog Profikabdity Structure Flexubity Rating pagnag VONLUMO IU JENSS EUORIDPY F 332 ape JJ ee ar a Issuer Data Tab si bobs bbb bbb bbe bb bt be b b cec rd Importance Wi Higher Moderne Lower Factor Override Selecta Factor inancialFiecinity HU Sublector veiride 58 Revert to impored Version Financial Discipline A Liquidity a FRO Fined Change Cover a a Factor Midpoint iim portance Higher T EX unt bbi Subfactors enslan Plan Funding a Importance Flag Peer Comparison Click Ratings to ssa underlying sublactors Edit Pears Emily Operating Managemen Drversifi Technology Maro Po Backlog Prilabi Financial Financial IDK Airbus Group WV Fitch a i E E Hu W bbbt Go E bb o aff a r E DAE 3ysierms pic a bbb DE bir B bbr a NN ib a W a mH Bap Bossing Company The a p a g E E 3 EH 3 B bl BD 3 n E A Fi
52. rters are at 33 Whitehall Street New York NY 10004 USA and its subsidiaries This disclaimer is subject to the terms of the license License accepted by the Licensee the terms of which were accepted by the Licensee on a click and accept basis prior to Licensee s access and usage of the Program and continue to apply to the Licensee in full All defined terms used in this disclaimer which are not separately defined have the meaning as set forth and defined in the License DISCLAIMER OF WARRANTIES AND REPRESENTATIONS LIMITATION OF LIABILITY LICENSEE ACKNOWLEDGES AND AGREES THAT THE PROGRAM AND ITS COMPONENTS ARE PROVIDED SOLELY FOR LICENSEE S INTERNAL BUSINESS USAGE ON AN AS IS BASIS THAT THE PROGRAM AND ITS DATA AND DATABASES MAY CONTAIN ERRORS AND DEFECTS AND THAT FITCH HAS NOT MADE ANY REPRESENTATIONS OR WARRANTIES REGARDING THE ACCURACY PERFORMANCE OR RELIABILITY OF THE PROGRAM OR ANY COMPONENTS THEREOF OR LICENSEE S USE OR ACCESS THEREOF OR THERETO OR ANY INFORMATION OR DATA LICENSEE OBTAINS FROM THE USE OF SUCH PROGRAM FITCH DOES NOT REPRESENT OR WARRANT THAT THE PROGRAM ITS COMPONENTS ITS DATA INFORMATION CONTENT OR OTHER MATERIAL WILL MEET LICENSEE S REQUIREMENTS THAT THE OPERATION OF ANY DATABASE MATERIAL OR OTHER PRODUCT OR ANY THIRD PARTY SERVICES PROGRAMS SYSTEMS OR DATA USED WITH OR THROUGH THE PROGRAM OR PROVIDED THEREWITH BY FITCH WILL BE UNINTERRUPTED OR FREE FROM ERRORS BUGS OR SOFTWARE VIRUSES INCLUDING BUT NOT LIMITED
53. stments and share buyback special dividends Gross or Total Adjusted Debt Short Term Debt Long Term Senior Secured Debt Long Term Senior Unsecured Debt Long Term Subordinated Debt Other Debt Off Balance Sheet Debt Equity Credit Readily Available Cash Cash Marketable Securities Restricted Blocked Cash Seasonality or Working Capital Adjustments Net Adjusted Debt Short Term Debt Long Term Senior Secured Debt Long Term Senior Unsecured Debt Long Term Subordinated Debt Other Debt Off Balance Sheet Debt Equity Credit Readily Available Cash Adjusted EBITDA Interest Operating EBIT Depreciation Gross Interest Expense Coverage amp Amortization Amortization of Goodwill amp Intangibles and adjusting for other non cash items 2 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates Adjusted Gross Short Term Debt Long Term Operating EBIT Depreciation Debt EBITDAR Senior Secured Debt Long amp Amortization Amortization Term Senior Unsecured Debt of Goodwill amp Intangibles Long Term Subordinated Debt Rental Expense Other Debt Off Balance Sheet Debt Equity Credit Capex CFO Capital Expenditure Cash Flow from Operations CFO Margin Cash Flow from Operations CFO Lease Adjusted Debt Cash Flow from Operations Short Term Debt Long Term Senior Secured Debt Long Term Senior Unsecured Debt Lon
54. ted settings Reset to Fitch Values Saving Your Work For confidentiality reasons your work on Navigator can only be saved into a local version of Navigator generated in Excel see the Excel Export version below You can continue to edit and review all your work and generate Navigator charts on this Export version but you cannot re import data to the web based Navigator tool at any stage Saving to Excel Save by Exporting to Excel Showcase PLC w Jv Select a new Company Aerospace amp Defence Ratings Navigator BUSINESS Management and Corporate Diversification Techn Governance Sector Risk Operating Profile Environment Tip To export a final chart quickly in soft copy e g for use in Powerpoint Export Shortcut presentations or e mails you can also simply use the image capture tool on your computer Snipping Tool in Windows Command Shift 4 in OS X to copy and paste the chart area for export to another document www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates If the export does not follow automatically you may be asked to accept a pop up This is easily done on most browsers the below example is from Chrome If you experience further problems please consult the Download Troubleshooter appendix below Problems with Download Pop up Blocker Flag y Dy Navigator Interactive for Co x 5 e D ny
55. the summary peer table To increase or decrease the number of peers chosen on the Peer Details page delete the tick mark alongside the peer To re select the peer re enter a tick alongside the peer by typing an upper case P De select Peer Comparison Re select Peer Here Operating Management and Diversification Environment Corporate Governance Boeing Company The v aa a B bbb J Airbus GroupNV v a Hp ap ap Lockheed Martin Corporation YW aa gH a n bb El United Technologies Corporation v aat aa aa i Note that de selected peers will remain in the table on the Summary and Navigation page and that you can only select de select peers that were originally imported to the EEV You cannot import additional peers into the EEV once the EEV has been created 13 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates EEV Editing Page Editing Subfactors and Factors in the EEV is very similar to the process in the web tool The link on the Summary and Navigation page selected as noted above will take you to the relevant lines in the Factor Details editing page from which you can either choose edit individual Subfactors or choose edit at the overall Factor level We have employed a split screen on this page so that a miniature version of the Navigator chart in the top half of the page allows you to keep track of how your edits are affecting the main Navig
56. ubfactor is pre selected based on the country already selected for that issuer as part of its identifier information You can nonetheless edit this selection Importantly poor individual governance at issuer level even if typical for the country would not be reflected in Systemic Governance but instead in the issuer specific Management Corporate Governance factor in the remaining Navigator inputs 21 www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 FitchRatings Ratings Navigator for Corporates How the FSO is modified by the OE result Impact of the Operating Environment on the FSO In many cases the Operating Environment has no direct impact on the FSO calculated by Navigator Interactive In such cases the Importance setting of the OE will automatically appear in both web and Excel versions as Low in light blue In other cases the OE can reduce the level of FSO calculated by Navigator Interactive The OE bar will therefore appear as a High importance factor in red The impact is asymmetrical the OE can never lead to a higher final FSO To assess the impact of the OE on the FSO Navigator Interactive calculates a preliminary or pre operating environment FSO PFSO The PFSO is the FSO of that issuer absent any influence from OE This PFSO is then compared with the OE for that issuer Depending on the level of the OE and its distance below the midpoint of the PFSO the midpoi
57. ue to labour unrest is more likely in weak economies This allows a differentiation between two issuers selling in the same markets but with assets located in countries with significantly different levels of economic stability Ukrainian versus Brazilian grain exporters for example Subfactor Financial Access Blended assessment of issuer s access to capital locally and globally An issuer s Financial Access FA level is a combination of e Subtopic 3 the strength of its local financial system both banks and capital markets as reflected in the Financial Market Development level of the relevant country and its own level of access to local funding and e Subtopic 4 its record of and ability to sustainably access international financial markets and institutions An issuer with good local access but limited access to international funding gets the same input as the Financial Market Development level of its local market The extent of the ability to tap international markets or banks on an unsecured basis defines how much the issuer can detach itself from the strength of its local financial market 20 Navigator Interactive For Corporates v1 0 June 2015 Issuer Financial Access Financial Market Development Level of Local Market Issuer s Funding Characteristics aa a bbb bb International blue chip issuer with demonstrable access on an unsecured aa aa aa a basis to top tier cross border banks and international financial markets
58. ulations For the convenience of users we have included simple algorithms within Navigator Interactive to help summarise a simplistic interaction of the factors that the tool Principles of presents for each peer We have chosen to keep the calculations simple to avoid Calculation confusion with an actual rating process but believe they mimic the thought process for credit ratings in three important ways Credit risk is asymmetric and therefore positive outliers tend to attract lower importance in the Factor and FSO calculations than negative outliers Credit risk is often affected by the weakest link in a chain rather than a neatly blended average so high risk factors attract significantly higher importance in the Factor and FSO calculations than moderate and lower risk factors Operating environment is a more complex blend of risks than simply the rating of the country in which the issuer is headquartered In many cases it has no impact in others it will have a material depressive effect It is also often asymmetric in nature Based on these three key parameters we developed two very simple formulae for computing individual Factors from Subfactors and the FSO from individual Factors These formulae apply across all Navigator sector templates Subfactors are combined to form individual Factor levels using the following formula Example 1 Three subfactors bbb b bb with the subfactor elements nion en converted to a numerica
59. very broad level on the three Subfactors of Economic Environment Financial Access and Systemic Governance or by setting the overall Factor To apply a more detailed approach we recommend that users download their Setting OE in the a l Excel export completed edits into the Excel Export Version and adjust the OE from there l SA k 7 Inside the EEV the OE is broken into five Subtopics three of which are auto populated based on your pre input country of incorporation of the issuer Factor Level Override Operating Environment No Override Active WE LL Economic Environment Where Value Created Widely diversified global Footprint or more than 34 exposure to countries with aa or a Economic Environments ie western Europe US Canada JaparilKorea Australi a2 Economic Environment Where Assets Located bbb or above Factor Direct Override Economic Environment Calculated Operating Issuer s Own Funding Characteristics Environment User defined Subtopics International blue chip issuer with demonstrable access on an unsecured basis to top tier cross border banks and international Financial Access Financial markets at all points in the cycle Systemic Governance for Home Market Systemic governance eg rule of law corruption government effectiveness of the issuer s country of incorporation consistent with Systemic Governance aa Pre populated Based on Issuer Country You MUST ent
60. y makela Pnmary makela characlengad by medium sarmpeblaa 95 blbo ATAT Ine aa gt 20 intensity and or moderate barriers to entry Very aang and suslamable m rket share in primary maikela Primary marketa characbenzed by moderate comgslree 3 kalban America Mal SAD de C V a gt 10 int amp pnsiby andor sama barriers lo entry Market challengetiliow market share lt 70 Primary markets characpenzed by moderare compelilrme x500 eralbon Padel SAO de C v br E m nnssty andor some tamers ip entry Vary bong and sustamable market share in primary markets Primary markets characbenzed by madum competion 55 bilhan ET Group pic bbb N 20 intensity andlor madarat hamar ba sing Selection and de selection of peers is controlled on the Summary and Navigation page see above To print the Peer Detail page simply select your print dialogue using your normal Excel shortcuts e g Ctrl P The page is pre formatted for printing to PDF or hard copy on a single sheet Note If you share an editable version with a colleague you are responsible for ensuring they read and understand the terms and conditions to which you have agreed in opening the Navigator tool these terms and conditions are repeated on the final tab of the Export version www fitchratings com Navigator Interactive For Corporates v1 0 June 2015 15 FitchRatings Ratings Navigator for Corporates Technical Background I Factor and Factor Summary Observation Calc

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