Policy for Unsolicited Ratings

Policy for Unsolicited Ratings

 

Policy Statement

Credit Rating Agency of Bangladesh Ltd may initiate credit ratings on issues or issuers without the request of the issuer or its agent in order to meet the needs of the market for broader ratings coverage. To assure consistency and transparency of application, CRAB defines specific guidelines for coverage based on the types and industry of the issuer and entity.

Under the policy, CRAB will separately identify unsolicited credit ratings with either a subscript or a notation. Initiating credit ratings without the request of the issuer is dependent upon adequate publicly available information and is subject to any local legal or regulatory requirements.

Unsolicited credit ratings will be identified as “Unsolicited” and by the following Unsolicited Rating Notation:

“This rating(s) was initiated by Credit Rating Agency of Bangladesh Ltd. It may be based solely on publicly available information and may or may not involve the participation of the entity/issuer’s management. CRAB has used information from sources believed to be reliable but does not guarantee the accuracy, adequacy, or completeness of any information used.”

 

Plans for Unsolicited Ratings:

 The policy for unsolicited rating will help to overcome the insufficiency of data, and thus assist to derive meaningful default study as per Basel II requirement.