Rating Process

FiinRating, a business unit of FiinGroup, is responsible for providing credit ratings in order to provide transparency, clarity and integrity to Vietnamese financial markets. Credit ratings are opinions on the ability and willingness of an issuer to repay a fixed income debt instrument, be it long-term or short-term. This document concentrates on the credit rating process implemented at FiinRating.

The credit rating process typically starts when FiinRating receives a request from a Corporate Issuer (solicited rating), the rated entity. In some cases, the request to rate might come from other organizations or individuals that are different from the rated entity. In this case, the rating is considered to be a paid non-participating rating. The entity to be rated will usually not participate in the process, and the rating decision will thus usually be based on publicly available information.

However, in both cases, the rating process is only initiated when FiinRating considers there is sufficient and qualified information to arrive at the most exact credit opinion.

A paid non-participating rating will usually not be published, and thus remains a “Private Rating”. The requester of such a rating can use such a rating opinion to make its own investment decisions.

9 steps in our Rating Process:

The commercial department of FiinRating is the first point of contact for a credit rating. After receiving a rating request from i) a corporate issuer issuing a debt instrument or ii) a client requesting a rating on a third-party issuer; FiinRating and the issuer / client will meet and conduct a conference to introduce the overall procedures of FiinRating’s credit rating services.

The commercial department of FiinRating will then proceed to sign a contract to provide credit rating service with the issuer/ client, and officially initiate the rating process. The two sides discuss and decide provisions of the contract such as: scope of work, responsibility and obligation, working time, service fee and the information provided by issuer/ customers.

If members of the analytical team attend an initial meeting with the issuer/client, they shall not participate in any commercial discussions (i.e. cost of the rating service, fees, etc.) and leave the room during such discussions. This ensures the independence of the analytical team from any commercial considerations of FiinRating.

If any member of the analytical team becomes aware of commercial information, they shall follow the Policy for the Inadvertent Disclosure of Commercial Information.

Learn more about Credit Rating Process   here.