Fitch Ratings yesterday answered criticisms of its capital model and ratings methodology, releasing a detailed report to give greater transparency to a market still trying to grapple with a raft of financial guarantor downgrades.

The report, which is in a question-and-answer format, addresses many of the questions that have been raised in the market about Fitch's capital model. Critics, including MBIA Inc., parent of bond insurer MBIA Insurance Corp., and Radian Group, parent of financial guarantor Radian Asset Assurance Inc., have raised concerns about the apparently conservative approach of the model.

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