Saturday, April 27, 2024

Rating Symbol Definition and Scale

July 16, 2018

Lianhe Global assigns credit ratings to issuers and their issuance of financial instruments. Issuer and issuance credit ratings can be long-term and short-term. The issuer rating focuses on the issuer’s capacity and willingness to meet its financial obligations as they come due. The issuance rating takes into account the nature of and provisions of the issuer’s specific financial obligation and assess its capacity and willingness to meet its financial commitment on this obligation.

Rating Process & Committee

April 12, 2023

Lianhe Global rating process generally includes the following stages:

  • Rating engagement with Lianhe Global;
  • Analyst staffing;
  • Information review and analysis;
  • Rating committee;
  • Rating result communication;
  • Rating result publication;
  • Rating surveillance; and
  • File and record keeping.

Independence and Conflict of Interests

It is essential in order for Lianhe Global to function appropriately in the marketplace that Lianhe Global retains an appropriate degree of objectivity when determining credit ratings. A potential and perceived lack of independence and/or existence of conflict of interest present challenges to Lianhe Global’s objectivity and role in the marketplace.

Lianhe Global requires its employees to be in a position of independence and has adopted internal procedures and mechanisms to identify, and eliminate, and/or manage and disclose as appropriate, any actual or potential conflicts of interest that may influence either: (i) the ratings Lianhe Global assigns; or (ii) the judgement and analyses of the licensed representatives who are involved in the preparation of ratings in order to ensure that credit rating services are undertaken in an objective manner.

Disclosure of any actual or potential conflicts of interest should be made in a timely manner.