Legal Counselling

Vietnam: 08 steps for a credit rating agency to develop its credit rating process

17:42, 05/10/2014

Recently, the Government of Vietnam has issued the Decree No. 88/2014/NĐ-CP on credit rating services.

08 bước DN xếp hạng tín nhiệm phải xây dựng quy trình HĐ xếp hạng tín nhiệm, Nghị định 88/2014/NĐ-CP

According to Article 26 of the Decree No. 88/2014/NĐ-CP of Vietnam’s Government, a credit rating agency shall develop its credit rating process involving the following basic steps:

- Negotiation on and signing of credit rating contracts with organizations subject to credit rating;

- Selection of and assignment of tasks to analysts participating in credit rating contracts under Article 29 of this Decree;

- Formation of credit rating councils to perform credit rating contracts under Article 30 of this Decree;

- Collection of information, analysis, assessment and grading of the ability of rated organizations to honor their debt obligations;

- Approval of credit rating results;

- Publication of reports on credit rating results;

- Monitoring, updating and periodical evaluation of reports on credit rating results under credit rating contracts until these contracts expire;

- Expiration of credit rating contracts.

Note: Credit rating agencies shall comply with the credit rating process prescribed above. Credit rating agencies shall disclose their own credit rating processes and updated versions thereof (if any) on their websites.

View more details at the Decree No. 88/2014/NĐ-CP of Vietnam’s Government, effective from November 15, 2014.

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

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