GCR Publishes New Appendix to Criteria for Rating Financial Services Companies: Asset Management Issuer Credit Ratings
18 November 2019 – GCR Ratings (“GCR”) has published the Appendix to Criteria for Rating Financial Services Companies: Asset Management Issuer Credit Ratings. The criteria is available for download at GCRratings.com/criteria.
GCR introduces the Appendix to Criteria for Rating Financial Services Companies: Asset Management Issuer Credit Ratings, representing a new approach to the analysis of credit ratings for Asset Managers. This criteria appendix acts as a supplement to GCR’s Criteria for Rating Financial Services Companies, published in May 2019, providing a breakdown of how the components are to be assessed and scored for entities falling within its scope. Consequently, it must be read in conjunction with the criteria, which can be found at GCRratings.com/criteria.
With respect to existing ratings, the criteria will be applied to specific entities previously rated under GCR’s corporate criteria, that would fall within the scope of this criteria. GCR anticipates a fairly low number of such existing rated entities to be rated under this new criteria, with some rating movement, if the criteria is adopted.
All affected companies rated by GCR are consequently placed “Under Criteria Observation”. The ratings of all affected entities will be reviewed using the new criteria within the next two months, which results in previously applicable review dates for these entities being potentially extended or brought forward.
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.