Court Restored Status of Authorized Rating Agency to Credit-Rating
OREANDA-NEWS. December 29, 2011. The Supreme Administrative Court of Ukraine upheld the decision of Kiev City Appeal Administrative Court by which the Resolution of the State Commission for Securities and Stock Market (SCSSM) dated 15 March 2011 No.246 (on withdrawal of the status of authorized rating agency from Credit-Rating) – had been ruled as unlawful.
The above decision has finished the legal dispute over the Agency’s status and allows credit-Rating to render the full range of credit rating services, including assignment of credit ratings which are mandatory by the legislation.In the view of the mentioned court decision, all credit ratings currently supported by Credit-Rating can be used by Ukrainian issuers while submitting the annual financial statements for 2011 to SCSSM.
According to Mr. Stanislav Dubko, the Agency’s CEO, “despite temporary suspension of it status, Credit Rating remained in its leading position in the rating market having the largest and the most representative clients’ portfolio and supporting its reputation as the most conservative Ukrainian rating agency which assessments objectively reflect the real creditworthiness of companies and issuers”.
Credit Rating is for now the only Ukrainian rating agency which ratings have been tested over an extended period of time covering all stages of an economic cycle, from the rapid growth up to the crisis.Rating statistics clearly indicate that issuers of debt securities with lower (speculative grade) credit ratings were subject to a much higher number of defaults during the crisis, while companies with higher (investment grade) ratings more successfully withstood adverse changes in the economic environment.
Founded in 2001, Credit-Rating render services on assignment of credit ratings at the Ukrainian National Rating Scale and has assigned 1136 credit ratings up to date. Credit-Rating is a member-founder of the European Association of Credit Rating Agencies (EACRA).