FAQs for Companies, Banks and Others Seeking a Credit Rating
How can I get a rating from CI Ratings?
All rating enquiries are handled by our Marketing Department. Feel free to get in touch if you have any queries regarding the types of ratings we assign, our rating process, the fees we charge, the terms and conditions of our rating agreements, or any other products/services (such as rating report subscriptions).
What are the benefits of being rated by CI Ratings?
There are many. Please read our Credit Rating Product Essentials here.
What is your ratings process?
Our rating process is summarised here.
Additional information is provided in this FAQs (keep reading!). If you have any other questions/queries, get in touch here.
How long does it take to complete a rating assignment?
We aim to complete a first-time rating assignment within 8-12 weeks from receipt of information. This, however, depends on the prospective rated entity being able to respond in a timely manner to requests for meetings and any other information. Completion targets may also be affected by prior commitments and factors such as extended public holidays.
Can the completion period be reduced?
It may be possible in some cases to reduce the completion period depending on our work load and provided we receive all required information expeditiously.
Is there any cost associated with soliciting a proposal from CI Ratings?
No, we do not charge for considering rating requests or responding to rating enquiries. Before we are able to send you a formal quotation, we will need information to assess the feasibility of rating your entity or proposed transaction / debt issuance. This includes, but is not limited to, your latest audited financials and any interim financials.
How much does CI Ratings charge for a credit rating?
Rating fees are based on a variety of factors including, but not limited to, the type of credit rating and the size, scope and complexity of the assignment. Entities interested in a credit rating should contact CI’s Marketing Department for a quotation. Most ratings are offered on a three-year renewable basis; rating agreements for medium-term financial obligations or issues may be longer. CI does not produce point-in-time or one-off credit ratings for marketable or publicly-tradeable debt instruments. For such instruments a multi-year rating agreement is required.
Is an entity required to pay a rating fee for a proposed debt instrument in the event it decides not to proceed with the issuance?
The issuer is required to pay for the initial rating report irrespective of whether or not the instrument is subsequently issued. However, annual surveillance fees will not be charged if a planned offering or placement is cancelled.
Does CI Ratings produce indicative credit assessments?
No, CI does not provide preliminary assessments of the creditworthiness of an entity or debt instrument as a service. We do, however, produce private credit ratings that are not disclosed to the public or to subscribers. Private ratings may be point-in-time or subject to surveillance and are determined in the same way as public ratings.
How often are ratings reviewed or updated?
Credit ratings are monitored on an ongoing basis and formally reviewed at least once every six months for sovereign and sub-sovereign ratings and at least once every 12 months for all other sectors (banks, corporates etc.). These time limits are regulatory maxima and cannot be exceeded. A credit rating may be reviewed and revised outside of the periodic (e.g. annual) cycle should we consider such a revision necessary in light of a material change in creditworthiness.
Do all credit ratings have to be disclosed publicly, or can ratings be kept private?
We offer public credit ratings – which are disseminated externally via our website and other platforms – and private credit ratings – which are provided exclusively to the client and are not intended for public disclosure, but may be shared with a limited number of third parties (up to 150 – the regulatory maximum) on a strictly confidential basis. Please note that private credit ratings may not be used for regulatory purposes in certain jurisdictions, including in the EU.
Can private ratings be converted to public ratings and vice versa?
Private ratings can be converted to public ratings at any time, but will usually be reviewed and updated before being issued publicly.
Public ratings can be converted to private ratings, but only after the publicly announced withdrawal of the public ratings. We will update the public ratings prior to their withdrawal both in the interests of investor protection and to deter rated entities from attempting to hide a deterioration in creditworthiness by switching the ratings from public to private.
Can an entity appeal the credit rating assigned by CI Ratings?
Yes. Please see Rating Appeals Policy.
Can an entity request that its credit ratings be withdrawn?
Yes, a rated entity may request that its rating be withdrawn. However, CI may decide not to withdraw the rating if there is a market need for maintaining coverage and CI is able to obtain sufficient and timely information from public sources.
What information is needed as part of the rating process?
To provide a credible opinion of creditworthiness, ratings must incorporate up to date information on the financial condition and business profile of the rated entity, as well as on the operating environment. Consequently, rated entities are expected to provide us with financial statements (annual and interim) and internal information in a timely manner and to inform us of any material changes in the financial condition and trading performance of the entity for the term of the rating agreement.
At the start of the rating process, we send the client a questionnaire which covers the key financial and non-financial information we need in order to assess creditworthiness. We use this information to do some preliminary analysis, and it also serves as the basis for subsequent face-to-face meetings with the entity. Ideally, written responses to all questions should be received before meetings are scheduled.
If information is not forthcoming or is deficient, CI may decide not to assign a credit rating or, in the case of an outstanding rating, may suspend or withdraw the rating.
How do you treat confidential information?
During the rating process entities often provide us with non-public information relating to their financial performance and operations, such as strategic plans and financial projections. Any non-public information which is obtained on a confidential basis by CI is kept strictly confidential, but may be used (without being specifically disclosed) in forming rating opinions and determining rating actions.
We also provide rated entities with advance copies of credit rating announcements and credit rating reports before they are published so they can check them and ensure that no confidential information is inadvertently disclosed.
What is the validity period of a credit rating?
A credit rating is monitored and maintained for a period of 12 months from the date of being first assigned or updated following an annual review. This means that a three-year rating agreement provides four years of ratings coverage. The rating (and/or rating outlook) can be revised at any time during the coverage period if our opinion of creditworthiness changes.