TRIS Rating Co., Ltd. today announced that it was considering a significant development of its ratings activities with the assignment of "Outlooks" in addition to the ratings it assigned to all of its current clients in financial, banking and commercial sectors with an aim to disclose more rating opinions and direction to its clients and investors.
Dr. Warapatr Todhanakasem, President of TRIS Rating, made the announcement at a seminar organised for its clients, financial advisors and members of the media, held today at Shangri-la Hotel, Bangkok. Dr. Warapatr said "we believe this initiative, if we proceed, could help the better understanding of our opinions and the use of our ratings in the Thai bond market."
TRIS Rating noted that its established practice of alerting the markets to a possible ratings change through CreditAlert, indicating that the rating assigned by TRIS Rating was under formal review by the rating agency, was an important component of its rating opinions, and had now become an essential part of the Thai bond market. The addition of "Outlooks" - intended to provide a medium-term view of the overall direction of ratings - would provide deeper insight into the rating agency's analytical processes.
Dr. Warapatr said that TRIS Rating was consulting with investors, issuers and market professionals to collect opinions and to promote understanding of the process. He noted that, if the development proceeded, it was likely that "Outlooks" would be assigned throughout the rating agency's spectrum of rated financial and commercial companies. A further announcement would be made as and when the decision had been taken to proceed and when the "Outlooks" had been assigned. Dr. Warapatr said that it was expected that "Outlooks" would be decided by TRIS Rating as part of its usual analytical processes, and that they would be announced alongside credit ratings and be freely available to the public. TRIS Rating noted that, pending finalization of the initiative, an announcement would most likely be made within June this year.
Dr. Warapatr said that TRIS Rating's "Outlooks" would be of three categories: "Positive", "Stable" and "Negative". He also noted that credit ratings assess a medium- to long-term fundamental ability and willingness of a company to service its debt in a timely manner. Therefore, credit ratings are generally stable and are less vulnerable to change from short-term factors, such as the avian flu or the SARS crisis. However, if the factors have significant impact on the company's medium- to long-term fundamental ability, the company's rating will need to reflect them.
TRIS Rating Co. Ltd., based in Bangkok, Thailand, is the leading domestic rating agency and has ten years of experience in the credit rating business. It has provided independent credit ratings for almost 200 financial and commercial companies in Thailand with accumulated value of rated debentures of more than Bt500 billion-- End
Dr. Warapatr Todhanakasem, President of TRIS Rating, made the announcement at a seminar organised for its clients, financial advisors and members of the media, held today at Shangri-la Hotel, Bangkok. Dr. Warapatr said "we believe this initiative, if we proceed, could help the better understanding of our opinions and the use of our ratings in the Thai bond market."
TRIS Rating noted that its established practice of alerting the markets to a possible ratings change through CreditAlert, indicating that the rating assigned by TRIS Rating was under formal review by the rating agency, was an important component of its rating opinions, and had now become an essential part of the Thai bond market. The addition of "Outlooks" - intended to provide a medium-term view of the overall direction of ratings - would provide deeper insight into the rating agency's analytical processes.
Dr. Warapatr said that TRIS Rating was consulting with investors, issuers and market professionals to collect opinions and to promote understanding of the process. He noted that, if the development proceeded, it was likely that "Outlooks" would be assigned throughout the rating agency's spectrum of rated financial and commercial companies. A further announcement would be made as and when the decision had been taken to proceed and when the "Outlooks" had been assigned. Dr. Warapatr said that it was expected that "Outlooks" would be decided by TRIS Rating as part of its usual analytical processes, and that they would be announced alongside credit ratings and be freely available to the public. TRIS Rating noted that, pending finalization of the initiative, an announcement would most likely be made within June this year.
Dr. Warapatr said that TRIS Rating's "Outlooks" would be of three categories: "Positive", "Stable" and "Negative". He also noted that credit ratings assess a medium- to long-term fundamental ability and willingness of a company to service its debt in a timely manner. Therefore, credit ratings are generally stable and are less vulnerable to change from short-term factors, such as the avian flu or the SARS crisis. However, if the factors have significant impact on the company's medium- to long-term fundamental ability, the company's rating will need to reflect them.
TRIS Rating Co. Ltd., based in Bangkok, Thailand, is the leading domestic rating agency and has ten years of experience in the credit rating business. It has provided independent credit ratings for almost 200 financial and commercial companies in Thailand with accumulated value of rated debentures of more than Bt500 billion-- End