What are the requirements for analysts participating in each credit rating contract in Vietnam?
What are the requirements for analysts participating in each credit rating contract in Vietnam?
Pursuant to Article 29 of Decree No. 88/2014/ND-CP stipulating as follows:
Analysts
1. For each credit rating contract, a credit rating agency shall select, assign tasks to and decide on the number of analysts based on the scope and characteristics of such contract. An analyst participating in each credit rating contract must meet the following basic requirements:
a/ Meeting all the criteria and conditions prescribed in Article 21 of this Decree;
b/ Not participating in the management of the credit rating agency;
c/ Not being concurrently a member of the credit rating council for such credit rating contract;
d/ Not falling into the cases of conflict of interest specified in Clause 2, Article 38 of this Decree when participating in such credit rating contract. In the course of performance of the contract, if there is a conflict of interest of the analyst specified in Clause 2, Article 38 of this Decree, the credit rating agency shall terminate the participation of the analyst in the credit rating contract. The agency may replace the analyst or add new analysts when necessary.
2. Tasks of analysts:
a/ To collect information, analyze, assess and grade the ability of rated organizations to honor their debt obligations as assigned by their credit rating agency;
b/ To report on tentative credit rating results to the credit rating council as assigned by their credit rating agency;
c/ To report to the credit rating council and request termination of their participation in credit rating contracts in the cases of conflict of interest specified in Article 38 of this Decree;
d/ To observe the code of conduct prescribed in Article 34 of this Decree.
Thus, an analyst participating in each credit rating contract must meet the following basic requirements:
- Having full civil act capacity as provided in the Civil Code.
- Not being cadres, civil servants or public employees as defined in the Law on Cadres and Civil Servants and the Law on Public Employees.
- Possessing a university or higher degree in economics, finance, banking, accounting, audit, statistics, business administration or professional field in the business lines of credit rating agencies.
- Having at least three (3) years’ working experience in any of economics, finance, banking, accounting, audit, statistics, business administration or professional field in the business lines of credit rating agencies.
- Not participating in the management of the credit rating agency;
- Not being concurrently a member of the credit rating council for such credit rating contract;
- Not falling into the cases of conflict of interest when participating in such credit rating contract.
What are the requirements for analysts participating in each credit rating contract in Vietnam?
What are the contents of the credit rating contract in Vietnam?
Pursuant to Article 27 of Decree No. 88/2014/ND-CP stipulating as follows:
Credit rating contracts
1. Credit rating contracts must ensure the principles prescribed in Article 5 of this Decree.
2. A credit rating contract shall be made in writing and contain the following principal details:
a/ Names, addresses and representatives of the credit rating agency and organization subject to credit rating;
b/ Credit rating purposes, scope and activities;
c/ Time limit for performance of the contract;
d/ Conditions and terms on disclosure of credit rating results; dd/ Credit rating service charge;
e/ Rights, obligations and responsibilities of the contracting parties in the course of performance of the contract;
g/ Obligation of the contracting parties to keep confidential information under Article 39 of this Decree;
h/ Monitoring, periodical evaluation and updating of reports on credit rating results until the contract expires;
i/ Cases in which the contract shall immaturely expire and responsibilities of the contracting parties;
k/ Settlement of disputes.
According to the above provisions, a credit rating contract shall be made in writing and contain the following principal details:
- Names, addresses and representatives of the credit rating agency and organization subject to credit rating;
- Credit rating purposes, scope and activities;
- Time limit for performance of the contract;
- Conditions and terms on disclosure of credit rating results; dd/ Credit rating service charge;
- Rights, obligations and responsibilities of the contracting parties in the course of performance of the contract;
- Obligation of the contracting parties to keep confidential information;
- Monitoring, periodical evaluation and updating of reports on credit rating results until the contract expires;
- Cases in which the contract shall immaturely expire and responsibilities of the contracting parties;
- Settlement of disputes.
What are the tasks of the credit rating council in Vietnam?
Pursuant to Clause 2, Article 30 of Decree No. 88/2014/ND-CP stipulating the tasks of the credit rating council in Vietnam as follows:
- To decide on credit rating results or change credit rating grades under the voting mechanism prescribed in the operation regulation of the credit rating council;
- In the course of performance of the contract, the credit rating council shall report to the manager of the agency on cases of conflict of interest of analysts and council members as specified in Clause 2, Article 38 of Decree No. 88/2014/ND-CP.
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