What information do agencies need to disclose about credit ratings in Vietnam? What is included in a report on credit rating results in Vietnam?
What information do agencies need to disclose about credit ratings in Vietnam?
Pursuant to Article 36 of Decree No. 88/2014/ND-CP stipulating as follows:
Disclosure of information
1. A credit rating agency shall disclose on its website the following basic information:
a/ Name of its general director or director;
b/ Code of conduct prescribed in Article 34 of this Decree;
c/ Credit rating method prescribed in Article 32 of this Decree;
d/ Credit rating grade prescribed in Article 33 of this Decree;
dd/ List and capital contribution portions of shareholders or capital-contributing members that hold over 5% of its paid-up charter capital;
e/ Change in the rate of holding by shareholders or capital-contributing members that hold over 5% of its paid-up charter capital;
g/ Report on credit rating results prescribed in Article 35 for each credit rating contract.
2. Once every six (6) months, a credit rating agency shall disclose on its website the following basic statistics:
a/ Credit rating grade of each rated organization since the first credit rating;
b/ Average percentage of rated organizations honoring their debt obligations in each rating grade.
3. Before May 1 every year, a credit rating agency shall disclose on its website a list of rated organizations with a credit rating service charge accounting for over 5% of its total turnover from credit rating activities in the fiscal year prior to the time of information disclosure.
4. Information specified in Clauses 1, 2 and 3 of this Article shall be maintained and archived on the websites of credit rating agencies within five (5) years after it is disclosed.
According to the above regulations, a credit rating agency shall disclose on its website the following basic information:
- Name of its general director or director;
- Code of conduct prescribed in Article 34 of this Decree;
- Credit rating method prescribed in Article 32 of this Decree;
- Credit rating grade prescribed in Article 33 of this Decree;
- List and capital contribution portions of shareholders or capital-contributing members that hold over 5% of its paid-up charter capital;
- Change in the rate of holding by shareholders or capital-contributing members that hold over 5% of its paid-up charter capital;
- Report on credit rating results prescribed in Article 35 for each credit rating contract.
What information do agencies need to disclose about credit ratings in Vietnam? What is included in a report on credit rating results in Vietnam?
What information do agencies need to keep confidential about credit rating in Vietnam?
Pursuant to Article 39 of Decree No. 88/2014/ND-CP stipulating as follows:
Confidentiality of information
Credit rating agencies and their analysts and credit rating council members may not disclose information on rated organizations under the confidentiality of information clause in credit rating contracts, except information specified in Article 36 of this Decree, information accepted by credit rating agencies for disclosure and information requested by competent state management agencies.
According to that, agencies may not disclose information on rated organizations under the confidentiality of information, except information specified in Article 36 of Decree No. 88/2014/ND-CP.
What is included in a report on credit rating results in Vietnam?
Pursuant to Article 35 of Decree No. 88/2014/ND-CP, a report on credit rating results must have the following principal contents:
- Credit rating grade;
- Overall evaluation of the rated organization;
- Material factors which positively and negatively impact the ability of the rated organization to honor its debt obligation;
- Statistics on all past credit ratings (if any) of the rated organization;
- Names and titles of analysts and credit rating council members participating in the credit rating contract;
- Cases in which analysts and credit rating council members cease their participation in the credit rating contract before the contract expires and the reason for the cessation;
- Rate of holding of the credit rating agency by the rated organization;
- Rates of holding of the credit rating agency by its employees;
- Commitment to conducting credit rating in an independent and impartial manner;
- Disclaimer that information in the credit rating report is for reference and is not an investment or capital contribution recommendation regarding debt or financial instruments issued by the credit rating agency.
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