Tuesday, June 18, 2019

Issuer & Issuance Ratings

Public Rating

Lianhe Global will primarily focus on public ratings. However, Lianhe Global will also consider assigning other ratings if there is such a market demand.

Private Rating

Lianhe Global private rating follows the same rating methodology and process as Lianhe Global public rating, with the exception that the rating and the report are not available in the public domain. Lianhe Global private rating could be relevant in a bilateral bond or loan transaction when the issuer and the sole investor (or a limited number of sophisticated investors) prefer privacy of the transaction.

Private ratings which are subsequently converted into public ratings will follow Lianhe Global rating process guidelines.

Point-in-time Rating

Most of the ratings assigned will be monitored on an on-going basis. However, certain ratings, especially private ratings, investors may only require assistance from the credit rating agencies at the origination of the bond transactions and such investors will use their in-house credit expertise to monitor the credit performance of such bond transactions. Hence Lianhe Global will consider assigning point-in-time rating in such circumstances.

Credit Assessment Service

A credit assessment is not a credit rating due to its limited scope of analysis and point-in-time nature. A credit assessment does not go through the same rigorous rating process as a credit rating. Lianhe Global conducts credit assessments at the request of either investors or issuers. Lianhe Global conducts credit assessment analysis based on publicly available information and/or limited information provided by investors or issuers. Credit assessment results are not published and their distribution is limited to a few designated recipients. LIanhe Global does not maintain or monitor any target entity on an on-going basis under this credit assessment service.

Lianhe Global Research

Research Reports

Lianhe Global publishes research reports from time to time to convey our viewpoints on a particular pressing topic, market event, or industry outlook relates to credit in a general sense but they do not target any particular entity. Research reports are not credit ratings.

Non-Rating Commentary

Lianhe Global publishes non-rating commentaries from time to time to convey our viewpoints on non-rating related pressing topic, market event, or industry outlook. While these non-rating commentaries are also independent and unbiased opinions of Lianhe Global, they may not have any credit reference or implication.

Ancillary and Other Services

Purpose: To avoid forms of conflicts of interests, so as to ensure Lianhe Global’s rating independence, Lianhe Global does not intend to provide ancillary services in its early stage of development.

If Lianhe Global intends to provide ancillary services in the future, after it initially receives its SFC Type 10 License, Lianhe Global  will ensure it in compliance with paragraph 30 of the Code. Prior to commencing any ancillary services business, Lianhe Global will immediately notify the SFC in writing regarding the specific nature of such ancillary services; and provide details on Lianhe Global’s internal controls, governing regulations and compliance supervision that would support any ancillary business services in the future and apply for any relevant SFC licenses, if necessary.