S&P Global (China) Ratings Registered to Rate in China's Exchange Bond Market

Rhea-AI Summary

S&P Global Ratings has completed its registration with the China Securities Regulatory Commission (CSRC), becoming the first wholly foreign-owned Credit Rating Agency able to issue ratings in China's exchange bond market. With this approval, S&P Global Ratings can now rate bonds and asset-backed securities traded in this market, thereby enhancing transparency and trust for global investors. This milestone follows previous achievements, including its first rating published in July 2019. The company aims to support the development of China's capital markets by providing independent and reliable credit ratings.

Positive

• First wholly foreign-owned CRA to operate in China's exchange bond market.
• Ability to rate bonds and asset-backed securities, broadening service offerings.
• Enhances transparency and trust for investors in China's capital markets.

Negative

• None.

BEIJING, Oct. 26, 2020 /PRNewswire/ -- S&P Global (China) Ratings announced recently that it has completed its registration filing with the China Securities Regulatory Commission (CSRC). This marks the first time that a wholly foreign-owned Credit Rating Agency (CRA) is able to produce credit ratings in China's exchange bond market.

Upon registration, S&P Global (China) Ratings can rate those bonds and asset-backed securities registered with CSRC that are traded or listed for transfer on China's exchange bond market, as well as rating issuers, originators, companies and other items specified by CSRC, excluding government bonds.

"The CSRC filing marks an important milestone in our long-term commitment to China's credit sector," said Hongshan Chen, President & CEO, S&P Global (China) Ratings. "It enhances our ability to deliver transparent, globally understood credit ratings and research to the world's second-largest bond market."

This registration means that S&P Global (China) Ratings, a subsidiary of S&P Global, has the broadest remit of any wholly foreign-owned CRA in China. In early 2019, the company received first-of-its-kind approval to publish ratings on the interbank bond market. The company published its first rating in July last year.

"Since the very beginning of our business in China, we have been deeply encouraged by the enthusiasm from market participants for our offering. There is a genuine appetite for granular, independent credit ratings in this market. We believe we can meet this need while also playing a role in the ongoing development of China's capital markets, offering something that is familiar to, and trusted by, investors around the world," Ms Chen said.

S&P Global (China) Ratings is the first wholly foreign-owned Credit Rating Agency to provide independent credit ratings in the domestic Chinese market. Its ratings and insights are built on the principles and objectivity of S&P Global Ratings, the world's leading provider of credit ratings. We provide our opinions and research about relative credit risk; market participants gain independent information to help support the growth of transparent, liquid debt markets within China and around the world. For more information, visit www.spgchinaratings.cn.

Copyright © 2020 by S&P Ratings (China) Co., Ltd. All rights reserved.

S&P Ratings (China) Co., Ltd. ("S&P Ratings") owns the copyright and/or other related intellectual property rights of the abovementioned content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content). No Content may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of S&P Ratings. The Content shall not be used for any unlawful or unauthorized purposes. S&P Ratings and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively "S&P Parties") do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P Ratings' opinions, analyses, forecasts and rating acknowledgment decisions (described below) are not and should not be viewed as recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P Ratings assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and / or clients when making investment and other business decisions. S&P Ratings does not act as a fiduciary or an investment advisor except where registered as such. While S&P Ratings has obtained information from sources it believes to be reliable, S&P Ratings does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

S&P RATINGS IS NOT PART OF THE NRSRO. A RATING ISSUED BY S&P RATINGS IS ASSIGNED ON A RATING SCALE SPECIFICALLY FOR USE IN CHINA, AND IS S&P RATINGS' OPINION OF AN OBLIGOR'S OVERALL CREDITWORTHINESS OR CAPACITY TO MEET SPECIFIC FINANCIAL OBLIGATIONS, RELATIVE TO THAT OF OTHER ISSUERS AND ISSUSES WITHIN CHINA ONLY AND PROVIDES A RANK ORDERING OF CREDIT RISK WITHIN CHINA. AN S&P RATINGS' RATING IS NOT A GLOBAL SCALE RATING, AND IS NOT AND SHOULD NOT BE VIEWED, RELIED UPON, OR REPRESENTED AS SUCH. S&P PARTIES ARE NOT RESPONSIBLE FOR ANY LOSSES CAUSED BY USES OF S&P RATINGS' RATINGS IN MANNERS CONTRARY TO THIS PARAGRAPH.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P Ratings reserves the right to assign, withdraw or suspend such acknowledgement at any time and in its sole discretion. S&P Ratings disclaims any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof. 

S&P Ratings keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P Ratings may have information that is not available to other S&P Ratings business units. S&P Ratings has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P Ratings may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P Ratings reserves the right to disseminate its opinions and analyses. S&P Ratings' public ratings and analyses are made available on its Web site www.spgchinaratings.cn, and may be distributed through other means, including via S&P Ratings' publications and third-party redistributors. 

 

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SOURCE S&P Global Ratings

FAQ

What significant milestone has S&P Global achieved in China as of October 2020?

S&P Global Ratings has completed its registration with the China Securities Regulatory Commission, allowing it to issue credit ratings in China’s exchange bond market.

What can S&P Global Ratings now rate in China's bond market?

S&P Global Ratings can rate bonds and asset-backed securities traded or listed in China's exchange bond market, excluding government bonds.

How does S&P Global Ratings enhance its service in China's credit sector?

By providing transparent, globally understood credit ratings, which meet the needs of market participants in China.

When did S&P Global Ratings publish its first rating in China?

S&P Global Ratings published its first rating in July 2019.

What does S&P Global Ratings aim to achieve in the Chinese market?

The company aims to support the development of China’s capital markets by offering independent and trustworthy credit ratings.