GCR Requests Public Comment on Draft Criteria for Rating Local and Regional Governments
Johannesburg, 6 May 2019: GCR has published the draft criteria for rating Local and Regional Governments.
The following reports are open to public comment until the 31st May 2019.
Request for Comment: Criteria for Rating Local and Regional Governments
The draft criteria includes a summary of how it fits into the overarching GCR Ratings Framework, details of which were released on 12 March 2019 in an announcement titled “GCR Requests Public Comment on Draft Ratings Framework Criteria and Draft Ratings Definitions” (please click here for further details). Each of the criteria include a proposed scope and summary of key changes, together with a breakdown of how each of the components are to be assessed and scored.
The draft 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 draft 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 gearing metrics.
GCR anticipates a moderate to moderately high impact on the ratings of local and regional governments, 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 May 2019. GCR will continue to support all ratings on existing methodologies until such time as the final criteria are adopted.
Sector Head: Corporate and Local Authority Ratings
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