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The steps involved in the credit rating process are listed below in chronological order:
The initiation of a credit rating process starts with the signing of a services contract between EthiFinance Ratings and the client (whether the rated entity or a third-party).
This “kick-off step” enables the rating team to explain the process and to detail the requested documents depending on the asset class and the characteristics of the rated entity.
The team of analysts performs the credit analysis in accordance with the credit rating methodology and will tipically meet with senior managers or the corresponding sponsors of the transaction to discuss the credit analysis and assure that all relevant information is included in the process.
The Rating Committee is the body responsible for approving the proposed credit rating or for modifying it.
Once the Rating Committee has approved a credit rating, the client/rated entity will be notified about the rating action, as per the regulatory requirements.
Clients are given a few days to review the credit rating. They may appeal the rating granted by the credit rating agency, provided that they can submit new information and solid arguments that substantiate the appeal. EthiFinance Ratings may accept or deny the appeal. If it is accepted, a new Rating Committee is convened to assign the final rating.
Once the final credit rating has been reviewed by the client, the definitive version of the rating report will be sent to the client and published, when applicable.
EthiFinance Ratings continually monitors the assigned credit rating and reviews it at least once a year (and every six months for Sovereign ratings) as per regulatory requirements. However, the credit rating may be reviewed at any time if, in the opinion of the analysts, events that have a material effect on the rating of the issuer/issuance have occurred.
