Code of Ethics

In the 15thMeeting of the Board of Directors of the CRAB held on 02 April 2006, the Board approvedthe adoption of Code of Ethics prescribed by Association of Credit Rating Agencies in Asia (ACRAA) and Code of  Conducts for Credit Rating Agencies prescribed by International Organization for Securities Commission (IOSCO).

Individuals involved with the credit rating process at member agencies shall agree to and abide by the following :

Code of Ethics
To be followed by concerned individuals

Adopted by ACRAA

1.  Credit Rating is a function of serious responsibility and any and all persons exercising the function shall view it as a matter of great trust.

2.  Members of credit rating boards / rating committees and any staff member participating in any way in the credit rating decision making, shall always apply to the credit rating process the highest degree of integrity, competence, objectivity and thoroughness, worthy of the trust the function requires.

3.  Although Credit Rating is a matter of opinion, it shall be reached through a formal and professional process, which is supported by appropriate objective criteria and based on information considered adequate and reliable by the rating agency.

4. The credit rating agency and its staff shall presume the confidentiality of the information received by it in the course of the credit rating process, and take all possible precautions towards this end.

5.  In case of any possible conflict of interest situation, the member of the credit rating board / rating committee or the staff member concerned shall disclose such conflict of interest and shall not participate in any manner in formulating or arriving at a rating. (Nevertheless, the person with a conflict of interest may be asked to be a resource person to give information or opinions useful for the consideration of others, but such person shall not participate in the voting process itself).

Member Credit Rating Agencies shall put in place systems and procedures to ensure the following:

Code of Ethics
to be followed by Rating Agencies

Adopted by ACRAA

1.  The proceedings of a credit rating board / rating committee, are kept confidential at all times, and not revealed to any external parties or agencies. If any records of the proceedings are made, credit rating agencies must take steps to keep such records properly safeguarded, except where required to be disclosed by the provisions of laws or regulations.

2.  When the credit rating board decides on a rating, it shall be announced as a joint decision and the individual votes shall be kept confidential, even if recorded. This requirement of confidentiality shall apply to rating board members for their own votes as well.

3.  When and after a credit rating board / rating committee member or credit rating agency employee terminates his/heremployment or work association with the rating agency,  the requirement of confidentiality with respect to the information received during the period of work association shall continue as information held in trust.

4.  A credit rating board / rating committee member does  not take undue material advantage of any confidential information received through his or her participation in a credit rating process. Persons involved in the ratings process should also be made vigilant to prevent abuse of prior knowledge of ratings changes.


The Code of Conduct Fundamentals for Credit Rating Agencies was developed by the Technical Committee of the International Organization of Securities Commission in December 2004.

The Code Fundamentals offer a set of robust, practical measures that serve as a guide to and a framework for implementing the Credit Rating Agencies principle objectives. These measures are the fundamentals which should be included in individual CRA codes of conduct, and the elements contained in the Code Fundamentals should receive the full support of CRA management and be backed by thorough compliance and enforcement mechanisms.

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