Issue Credit Rating Methodology For Nonbank Financial Institutions And Nonbank Financial Services Companies - Summary Of The Criteria

Oct 3, 2026

Issue credit rating methodology for obligations issued by nonbank financial institutions (NBFIs) and nonbank financial services companies (FSCs), including nonoperating holding companies. The criteria explain sector-based approaches for hybrid capital instruments and senior obligations, deriving issue ratings from issuer credit ratings, group credit profile, and SACP where applicable. Recovery ratings are applied for certain products, while for FSC FMIs the framework uses Rating Each Issue and notching without recovery ratings, with revisions and related criteria referenced.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages11

Reading Time28 min

AccessFree to download

Scope of the Criteria

Summary of the Criteria

Methodology

FSC Finance Companies and Asset Managers--Senior Obligations and Conventional NDSD Obligations With the Same Likelihood of Default

FSC Finance Companies and Asset Managers--Hybrid Capital Instruments

FSC FMIs--Senior Obligations and Conventional NDSD Obligations With the Same Likelihood of Default

FMI Debt Obligations--Hybrid Capital Instruments

NBFI Finance Companies, BDCs, and Securities Firms--Senior Secured Debt and Senior Unsecured Debt

NBFI--First-Lien Senior Secured Debt

NBFI--Senior Unsecured Debt and Junior Secured Debt

NBFI Finance Companies and Securities Firms (Whether Prudentially Regulated or Not)--NDSD and Hybrid Capital Instruments

Glossary

Revisions and Updates

Related Criteria and Research

| | | --- | | | Criteria | Financial Institutions | General: Issue Credit Rating Methodology For Nonbank Financial Institutions And Nonbank Financial Services Companies Analytical Contacts: Brendan Browne, CFA, New York (1) 212-438-7399; [brendan.browne@spglobal.com](brendan.browne@spglobal.com)[ ](brendan.browne@spglobal.com)Robert B Hoban, New York (1) 212-438-7385; [robert.hoban@spglobal.com](robert.hoban@spglobal.com) Matthew B Albrecht, CFA, New York (1) 212-438-1867; [matthew.albrecht@spglobal.com](matthew.albrecht@spglobal.com)[ ](matthew.albrecht@spglobal.com)Claudia Sanchez, Mexico City (52) 55-5081-4418; [claudia.sanchez@spglobal.com](claudia.sanchez@spglobal.com)[ ](claudia.sanchez@spglobal.com)Dhruv Roy, London (44) 20-7176-6709; [dhruv.roy@spglobal.com](dhruv.roy@spglobal.com) Peter Sikora, Melbourne (61) 3-9631-2094; [peter.sikora@spglobal.com](peter.sikora@spglobal.com) Criteria Contacts: Nik Khakee, New York (1) 212-438-2473; [nik.khakee@spglobal.com](nik.khakee@spglobal.com) Michelle M Brennan, London (44) 20-7176-7205; [michelle.brennan@spglobal.com](michelle.brennan@spglobal.com)[ ](michelle.brennan@spglobal.com)Tom Connell, Toronto (1) 416-507-2501; [thomas.connell@spglobal.com](thomas.connell@spglobal.com) Table Of Contents SCOPE OF THE CRITERIA SUMMARY OF THE CRITERIA METHODOLOGY FSC Finance Companies And Asset Managers--Senior Obligations And Conventional NDSD Obligations With The Same Likelihood Of Default FSC Finance Companies And Asset Managers--Hybrid Capital Instruments FSC FMIs--Senior Obligations And Conventional NDSD Obligations With The Same Likelihood Of Default WWW. STANDARDANDPOORS. COM/RATINGSDIRECT DECEMBER 9, 2014 1 Table Of Contents (cont.) FMI Debt Obligations--Hybrid Capital Instruments NBFI Finance Companies, BDCs, And Securities Firms--Senior Secured Debt And Senior Unsecured Debt NBFI--First-Lien Senior Secured Debt NBFI--Senior Unsecured Debt And Junior Secured Debt NBFI Finance Companies And Securities Firms (Whether Prudentially Regulated Or Not)--NDSD And Hybrid Capital Instruments GLOSSARY REVISIONS AND UPDATES RELATED CRITERIA AND RESEARCH WWW. STANDARDANDPOORS. COM/RATINGSDIRECT DECEMBER 9, 2014 2 Criteria | Financial Institutions | General: Issue Credit Rating Methodology For Nonbank Financial Institutions And Nonbank Financial Services Companies (Editor's Note: We're republishing this article following our periodic review completed on Dec. 4, 2017. See the "Revisions And Updates"section for details. On Dec. 11, 2017, we published "Request For Comment: Methodology And Assumptions For Analyzing Obligations Issued By Financial Market Infrastructure Companies. " If the proposed criteria were adopted, sections of this article pertaining to financial market infrastructures would be fully superseded.) 1. These criteria explain how we rate obligations issued by nonbank financial institutions (NBFIs) and nonbank financial services companies (FSCs), including nonoperating holding companies (NOHCs) of such groups. These criteria should be read in conjunction with the criteria listed in the Related Criteria And Research section. The approaches differentiate by sector (see table 1) and primarily reflect the following factors: • For hybrid capital instruments, the bank hybrid capital criteria ("Bank Hybrid Capital And Nondeferrable Subordinated Debt Methodology And Assumptions," published Jan. 29, 2015) continue to apply to all NBFIs. The hybrid capital handbook ("Hybrid Capital Handbook: September 2008 Edition," published Sept. 15, 2008) and associated articles (see Related Criteria And Research) continue to apply to all FSCs, apart from some limited cases for certain financial market infrastructure companies (FMIs) that are prudentially regulated (as described in the footnote of table 1 and paragraph 20) . • For senior obligations, we derive issue credit ratings from the issuer credit rating (ICR) of the issuer or gu

FAQs

What entities are covered by this issue credit rating methodology?

The criteria cover obligations issued by nonbank financial institutions (NBFIs) and nonbank financial services companies (FSCs), including nonoperating holding companies of such groups.

How are issue credit ratings for senior obligations derived?

Senior issue credit ratings are derived from the issuer credit rating (ICR) of the issuer or guarantor, or from the applicable sector key credit factor, with notching up or down from ICR, group credit profile, or SACP as applicable.

Does the methodology apply recovery ratings for all debt obligations?

Recovery ratings are applied where specified for certain senior obligations and instruments, but for FSC FMIs it does not assign recovery ratings; instead it applies notching as described in the methodology.

Oct 3, 2026

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