GCR Publishes New Criteria for Rating Investment Holding Companies
18 November 2019 – GCR Ratings (“GCR”) has published the Criteria for Rating Investment Holding Companies. The criteria is available for download at GCRratings.com/criteria.
GCR introduces the Criteria for Rating Investment Holding Companies, representing a new approach to the analysis of investment holding companies. The criteria includes a summary of how it fits into the overarching Criteria for the GCR Ratings Framework, published on 22nd May 2019 (GCRratings.com/criteria). The criteria includes a scope, together with a breakdown of how each of the components are to be assessed and scored.
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.
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.