TRIS Rating clarified today the reason it canceled the issue rating of Acumen Co., Ltd. last week. TRIS Rating said that it has the responsibility to provide investors with up to date rating that reflects the real status of the issuer, and with the ACUMEN's case, it lacked the most up to date information that it needed.
TRIS Rating announced on 31 January 2003 that it was canceling its rating service agreement with ACUMEN, which automatically terminated the rating of ACUMEN's Bt3,500 million senior secured debentures.
Dr Warapatr Todhanakasem, TRIS Rating's President, explained that TRIS Rating's responsibility as a credit rating agency is to assign and review credit ratings that reflect the capability of issuers to repay debt on a timely basis. For the ACUMEN case, TRIS Rating had been requesting information that may have had a significant impact on the rating of ACUMEN's debentures, which TRIS Rating previously had rated "BBB+". TRIS Rating had also informed ACUMEN's management that as a credit rating agency, TRIS Rating had the responsibility to publicize the most up to date rating information and that debenturesholders rely on TRIS Rating to do this. TRIS Rating had also made clear to the management of ACUMEN that it cannot assign a credit rating to any firm that fails to supply information that may significantly effect an existing rating.
Dr. Warapatr said that for TRIS Rating to fulfill its mission, it is vital to have the cooperation of the client in supplying the required information. This notwithstanding, TRIS Rating also has a strict practice of keeping the confidential information of its client confidential.
TRIS Rating issued this clarification of the cancellation of its credit rating service agreement with ACUMEN after many institutional investors contacted the rating agency asking the reason for the cancellation, Dr. Warapatr said. -- End
TRIS Rating announced on 31 January 2003 that it was canceling its rating service agreement with ACUMEN, which automatically terminated the rating of ACUMEN's Bt3,500 million senior secured debentures.
Dr Warapatr Todhanakasem, TRIS Rating's President, explained that TRIS Rating's responsibility as a credit rating agency is to assign and review credit ratings that reflect the capability of issuers to repay debt on a timely basis. For the ACUMEN case, TRIS Rating had been requesting information that may have had a significant impact on the rating of ACUMEN's debentures, which TRIS Rating previously had rated "BBB+". TRIS Rating had also informed ACUMEN's management that as a credit rating agency, TRIS Rating had the responsibility to publicize the most up to date rating information and that debenturesholders rely on TRIS Rating to do this. TRIS Rating had also made clear to the management of ACUMEN that it cannot assign a credit rating to any firm that fails to supply information that may significantly effect an existing rating.
Dr. Warapatr said that for TRIS Rating to fulfill its mission, it is vital to have the cooperation of the client in supplying the required information. This notwithstanding, TRIS Rating also has a strict practice of keeping the confidential information of its client confidential.
TRIS Rating issued this clarification of the cancellation of its credit rating service agreement with ACUMEN after many institutional investors contacted the rating agency asking the reason for the cancellation, Dr. Warapatr said. -- End