Fitch Ratings is seeking comment on a proposed method for developing its ratings of insurance-linked securities, but said the new approach won't change existing ratings.

In an eight-page report, "Exposure Draft: Insurance-Linked Securities: Ratings Criteria (Global)," the Chicago-based rating agency said there is a proliferation of new types of insurance-linked securities (ILS) in addition to current catastrophe bond structures. These new securities warrant the development and use of a broad rating approach that applies to this rapidly developing class of securities.

The report defines ILS broadly as securities whose principal and interest payments are conditional upon the occurrence or nonoccurrence of some insured event.

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