Purpose
Beacon Ratingsโ policy for announcing ratings to clients and to the public follows a standard procedure.
Terms of rating
Beacon Ratings agrees to maintain the rating, subject to at least one review per year for the duration of the agreement. This is subject to change at any time for reason(s) deems sufficiently reasonable to amend, withdraw or suspend the rating for reasons.
Rating report
The content of every rating report will include the following:
One pager report
- Latest and previous rating
- Rating type
- Key rating rationale supporting the rating decision
- Key financial data used for the rating
- Names and contact details of the rating analysts
- In case of unsolicited ratings, the extent of participation by the entity/issuer, its management, or its auditors in the credit rating process and source of information used in arriving at the rating.
- Disclaimer, which should contain the following statements:
- Information was obtained from sources believed to be accurate and reliable; however, Beacon Ratings does not guarantee the accuracy, adequacy or completeness of information, and is not responsible for errors or omissions in the rating arising from the use of such information.
- Beacon Ratings, its Rating Analysts and Rating Committee members involved in the rating process do not have any conflict of interest relating to the rating contain in this report.
- Rating is an opinion on credit quality and is not a recommendation to buy or sell any securities.
- Copyright to Beacon Ratings, contents may be used with credit to Beacon Ratings.
Detail report
- Latest and previous rating
- Dynamics of the sector in which the entity operates
- Overview of the entity
- Detailed analysis of the various qualitative and quantitative business and operational risk factors considered during the rating process
- Benchmarks used, any sensitivity analyses performed and its results, comparative analyses made with other entities in the industry and credit enhancements
- Structure of debt instrument, collateral details and covenants, in case of debt instrument.
- History of credit rating for last five years, if available, in case of entity ratings; and for the full tenure in case of instrument ratings
Press release
Every press release must contain the following disclosures:
- Latest and previous rating
- Latest rating action
- Date of last rating
- Principal methodology or methodology version used in determining the rating
- Rating rationale supporting the rating
- Contact details of senior team members