Agency News / 23.07.2012
AK&M Rating Agency updates credit rating method for companies & enterprises adding criteria for foreign companies to be rated as per the national Russian scale
AK&M Rating Agency deems it possible to assign credit ratings as per the national Russian scale to corporate entities governed by laws different from Russia’s legislation.
The updated credit rating method specifies requirements to foreign companies applying for a rating score as per the Russian scale. In particular, a foreign company may be rated as per the national scale if its core activities are concentrated in Russia. Our analysts believe that a company is also eligible for a credit rating as per the national scale as long as its beneficial owners are Russian legal entities or individuals, or if it functions as a holding company owning assets in the Russian Federation.
AK&M Information Agency obeys the Central Bank of Russia’s restrictions applying to non-residents and does not consider it possible to assign ratings as per the national scale to residents of the states providing preferential tax treatment and exemption from disclosing and providing information related to financial operations, mentioned as such in the regulatory documents of the Central Bank of Russia.
These amendments concern the general provisions of the method; the updated method is not essentially different from its previous versions. This update will not change the already assigned rating scores in any way.
The credit rating is a comprehensive assessment of the corporate entity’s ability to fully and timely fulfill its debt obligations.