Reviewing Credit Ratings When Methodologies Change

1. When Capital Intelligence Ratings intends to make material changes to methodologies, models or key rating assumptions, or use new rating methodologies, models or key rating assumptions that could have an impact on a credit rating, CI Ratings shall:

1. Publish the proposed material changes or proposed new rating methodologies on the CI website, inviting stakeholders to submit comments for a period of one month together with a detailed explanation of the reasons for and the implications of the proposed material changes or proposed new rating methodologies.
2. Inform European Securities and Markets Authority (‘ESMA’) and publish on the CI website the results of the consultation and the new rating methodologies together with a detailed explanation thereof and their date of application.
3. Publish on the CI website the responses to the consultation referred to in Point 1(a) except in cases where confidentiality is requested by the respondent to the consultation.
4. Publish a Credit Rating Announcement describing the changes and indicating the likely scope of credit ratings to be affected
5. Review the affected credit ratings as soon as possible and no later than six months after the change, in the meantime placing those ratings under observation; and
6. Re-rate all credit ratings that have been based on those methodologies, models or key rating assumptions if, following the review, the overall combined effect of the changes affects those credit ratings.

2. When CI becomes aware of errors in its rating methodologies or in their application CI shall:

1. Notify those errors to ESMA and all affected rated entities explaining the impact on its ratings including the need to review the affected ratings.
2. Where the errors have an impact on its credit ratings, publish those errors on the CI website
3. Correct those errors in the rating methodologies.
4. Apply the measures referred to in Point 1 (d ,e, f) specified above.