Vietnam: Requirements for analyst when participating in each credit rating contract

According to Article 29 of the Decree No. 88/2014/NĐ-CP of Vietnam’s Government, 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:

- Meeting all the criteria and conditions for analysts;

- 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 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.

Besides, this Decree also stipulates tasks of analysts as follows:

- To collect information, analyze, assess and grade the ability of rated organizations to honor their debt obligations as assigned by their credit rating agency;

- To report on tentative credit rating results to the credit rating council as assigned by their credit rating agency;

- 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;

- To observe the code of conduct prescribed in Article 34 of this Decree.

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

Ty Na

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