relevant information in the past, we have reported on the Bank of Nanjing’s credit rating, the status of three consecutive fall has occurred. Therefore, the Bank of Nanjing requires the standard & Poor’s revocation of the case raised a high degree of concern in the industry. However, according to the Securities Times reporter, the mode of cooperation between domestic enterprises and rating agencies are mostly commissioned, that is, companies pay commissioned rating agencies rating their own. In other words, in a specific contract, the company has the right to require the rating agency to revoke the rating.
recently, the Bank of Nanjing asked the standard & Poor’s withdrawal of its negative outlook rating, which makes the market a great surprise. The case of China’s A-share market, the first time the bank has asked A to withdraw the rating of the case, the attention of many bank executives, but also bring a lot of questions.
has three questions more representative: first, as long as the rating object (that is, the bond issuer) on the rating agencies to withdraw the request, it can be revoked? Two, if you want to withdraw the ratings, then other banks will follow suit? Three, the credibility of the rating agencies?
Securities Times reporter through interviews and information on the industry, the basic answer to these questions.
problem is mainly determined by the rating agencies used by the rating agencies – commissioned or active type; even if the use of the same rating approach, there are still differences in the understanding of the criteria for the withdrawal of different rating agencies.
both at home and abroad, the current mode of cooperation between enterprises and rating agencies are mostly commissioned type, that is, as a corporate bond issuers, pay the rating agencies rating their own. The initiative of the rating is less, the majority of sovereign ratings using active rating approach.
active type refers to the rating agencies in the spontaneous, without direct access to income, to market a high degree of concern and can easily obtain more complete data organization assessment, such as the S & P to the U.S. government, Tesla and LinkedIn were determined by active evaluation. The rating agencies currently involved non sovereign class active assessment is the debt credit, and it is the biggest difference with other big foreign rating agencies pay is the main body, is not the issuer to pay, but paid by the investors.
according to the Securities Times reporter, the use of active rating approach is unable to revoke the rating results. But for the type of rating results can be revoked, different rating agencies vary.
S & P said, "evaluation way to give a client request the right to withdraw, the Bank of Nanjing is not the first to require revocation of the rating of the China enterprise, but we will issue a press release on the revocation, show their attitude and position for the rating results. Even if withdrawn, for investors to play the role of credit risk still exists. Recommended