GCR Requests Public Comment on Draft Criteria for Rating Investment Holding Companies
9 October 2019 – GCR Ratings (“GCR”) has published the draft Criteria for Rating Investment Holding Companies. The criteria is open to public comment until the 31st of October 2019, and is available for download at GCRratings.com/criteria.
GCR introduces the draft Criteria for Rating Investment Holding Companies, representing a new approach to the analysis of investment holding companies. The draft 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 proposed 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, if the proposed draft criteria is adopted.
GCR invites comment on the draft criteria presented above and welcomes comments which may be sent to rfc@GCRratings.com, prior to the closing of the comment period on the 31st of October 2019. GCR will continue to support all ratings on existing methodologies until such time as the final criteria are adopted.
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.