Cyberattacks pose risks to finance deals: Fitch

ISTANBUL 

Cyberattacks present risks to finance deals that could affect parties in transactions and may even have credit implications, Fitch Ratings warned on Thursday.

“The credit impact could result from interruptions to operational activities, a reassessment of the quality of risk management, or spill-overs to underlying obligor behaviour,” the rating agency said in a statement. “Ultimately, a cyber-attack could lead to a missed bond payment that is owed on a timely basis.”

Fitch said a cyberattack could cause an interruption of asset servicing as information technology (IT) systems are shut down if unauthorized access is detected, or if parts of a business are locked out of certain IT systems.

In some cases, especially involving data theft, a cyberattack could present reputational risk for companies, with a potential loss of business, fines or lawsuits, it added.

“Additionally, shutting-down or locking out of IT systems may mean servicers are unable to work-out defaulted positions, delaying recoveries from the portfolio,” said the statement.

The agency urged strengthening security infrastructure and implementing intrusion prevention and detection tools.

Other steps include network segregation, performing vulnerability and penetration testing frequently, staff training, and adopting mitigation tools, such as cybersecurity insurance coverage.

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