Limitation & Usage

Limitations & Usage

GCR defines credit risk as the risk that an entity may not meet its contractual financial obligations as they come due. Thus, a credit rating is an assessment carried out from the limited standpoint of credit risk evaluation and therefore constitutes a current opinion on the credit quality of a specific issuer or issue of debt, in terms of the issuer’s ability and willingness to meet principal and interest payments in a timely manner. Credit ratings do not address other risks such as, but not limited to, fraud, organised crime, market liquidity, market value risk, or price volatility. Credit ratings are opinions and not statements of current or historical fact, and therefore cannot be considered ‘accurate’ or inaccurate’. They do not constitute recommendations to buy, sell or hold any security, or provide investment or financial advice, for example regarding the suitability of an investment or adequacy of market price. GCR does not have a fiduciary relationship with any issuer, subscriber or any other individual. Nothing is intended to or should be construed as creating a fiduciary relationship between GCR and any issuer or between the agency and any user of its ratings. GCR does not provide to any party any financial advice, or legal, auditing, accounting, appraisal, valuation or actuarial services. A rating should not be viewed as a replacement for such advice or services. It is our expectation that each investor will make its own study and evaluation of each security or issuer that is under consideration. Users should refer to the definition of each individual rating for guidance on the dimensions of risk covered by such rating.

Ratings assigned are opinions and are accorded by a panel of qualified individuals based on methodologies that are evaluated regularly and updated. Therefore, one person is not solely responsible for a rating, but rather ratings are the collective work of GCR’s experiences.

Users of GCR’s ratings should take note of the general limitations on the nature of the information (be it public or non-public information and documents) provided during the course of the rating process. In issuing and maintaining its ratings, GCR relies on information received from rated clients and also other sources GCR believes to be reliable, including publicly available information and/or non-public documents and information. Publication and maintenance of all ratings are subject to there being sufficient information, consistent with the relevant criteria and methodology, to form a rating opinion. GCR conducts a practical investigation into the factual and/or perceived accuracy of the information relied on in accordance with its rating methodology. However, rated clients may provide factually incorrect information to GCR or choose not to share certain information with GCR. As such, users of ratings should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information GCR relies on in connection with a rating will be accurate and complete. Ultimately, the rated client is responsible for the accuracy of the information supplied to GCR. Further, in issuing its ratings GCR must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. If any information should turn out to contain misrepresentations or be otherwise misleading, the rating associated with that information may not be appropriate. The assignment of any rating should not be considered as a guarantee of the accuracy, completeness, or timeliness of the information relied on in connection with the rating or the results obtained from the use thereof.

Users of GCR’s ratings should also take note of the fact that GCR’s rating opinions are inherently forward-looking and embody analysts’ assumptions and predictions about future events that, by their nature, cannot be verified as facts. As a result, despite any verification of current facts, ratings can be affected by future events or conditions that were not anticipated at the time a rating was issued or affirmed. In many cases, these views on future performance may include forecasts, which may in turn (i) be informed by non-disclosable management projections, (ii) be based on a trend (sector or wider economic cycle) at a certain stage in the cycle, or (iii) be based on historical performance. As a result, while ratings may include cyclical considerations and typically attempt to assess the likelihood of repayment at “ultimate/final maturity”, material changes in economic conditions and expectations (for a particular issuer) may result in a rating change.

Ratings may be changed, qualified, placed on Rating Watch, Outlooks assigned, modified, or withdrawn as a result of changes in, additions to, accuracy of, unavailability of or inadequacy of information or for any reason GCR sees fit.