criteria includes a summary of how LRG analysis fits into the overarching GCR
Ratings Framework, details of which available in the Criteria for the GCR
Ratings Framework (please click here for further details). The criteria includes a
scope and summary of key changes, together with a breakdown of how each of the
components are to be assessed and scored.
criteria has retained much of the fundamentals utilised in the previous GCR
methodology (namely, Global Credit Rating
Co. – Global Master Criteria for Public Entities, last updated in February 2018).
Of significance is the criteria’s alignment to the broader GCR Ratings
Framework. Some of the specific changes introduced for analysing local and
regional governments include a more systematic analysis of an entity’s profile
with in a particular jurisdiction, as well as a greater reliance on specific
previously invited comment on the criteria from market participants. There have
been no significant amendments to the criteria based on feedback. Smaller
changes to the criteria include some adjustment to the risk scoring for
gearing, increased explanation regarding how the criteria/ framework is utilised,
as well as various editing changes.
anticipates a moderate to moderately high impact on the ratings of local and
LRGs rated by GCR have been placed “Under Criteria Observation”. The ratings of
all affected entities will be reviewed using the new criteria over the next six
months (between June 13 2019 and December 13 2019), which results in previously
applicable review dates for these entities being potentially extended or
CREDIT RATINGS ISSUED AND RESEARCH PUBLICATIONS PUBLISHED BY GCR, ARE GCR’S OPINIONS, AS AT THE DATE OF ISSUE OR PUBLICATION THEREOF, OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. GCR DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL AND/OR FINANCIAL OBLIGATIONS AS THEY BECOME DUE. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: FRAUD, MARKET LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND GCR’S OPINIONS INCLUDED IN GCR’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS AND GCR’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND GCR’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL OR HOLD PARTICULAR SECURITIES. NEITHER GCR’S CREDIT RATINGS, NOR ITS PUBLICATIONS, COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. GCR ISSUES ITS CREDIT RATINGS AND PUBLISHES GCR’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING OR SALE.