Fitch Ratings will make some minor but "important" adjustments to its approach in rating catastrophe bonds, the company said.

The changes were outlined in a report, which explained that the updated rating methodology will be similar to its previous method but will differ "in several important ways."

Fitch said the most significant change will be that it will now rate all catastrophe bond tranches (segments or tiers) against a probability of loss criterion, as opposed to only rating investment-grade catastrophe bond tranches in this way.

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