Coverage

  • Financial Statement Adjustments for Corporates

  • Banking

  • Hybrid Instruments: Equity Credit and Notching

  • Non-Bank Financial Institutions

  • Structured Finance

  • Parent-Subsidiary Linkage and Notching

 

Financial Statement Adjustments for Corporates 

Lianhe Ratings Global Limited’s (“Lianhe Global”) general corporate criteria were originally published on 16 July 2018. Lianhe Global recognizes there are differences in financial reporting standards among regions and industries. We strive to standardize these differences for the sake of comparability of financial data and consistency of our credit analysis. Thus, we make appropriate financial statement adjustments and outline the standard adjustments in this report. These are common and standard adjustments, and analysts will make other non-standard reclassifications and adjustments as they see fit to account for unique circumstances.

Lianhe Global invites market participants to provide comments and feedback on the proposed criteria by 31 March 2022 by submitting their comments and feedback to info@lhratingsglobal.com.

No changes to our existing ratings are expected to result from the publication of the criteria, as it primarily relates to further supplement to and elaboration of the general corporate criteria published on 31 December 2021.

Banking Criteria

Lianhe Ratings Global Limited’s (“Lianhe Global”)  banking criteria was originally published on 16 July 2018. The current proposed criteria primarily elaborates on the details of the factors and subfactors that we consider when assigning ratings to banks.

Lianhe Global invites market participants to provide comments and feedback on this proposed criteria by 31 March, 2021 by submitting their comments and feedback to info@lhratingsglobal.com.

Hybrid Instruments: Equity Credit and Notching Criteria

Lianhe Ratings Global Limited (“Lianhe Global”) applies the hybrid instruments criteria to corporate entities that are not in the industry of banking, non-bank finance, regulated monopolies (e.g. utilities), not-for-profit, and public and government services.

Lianhe Global invites market participants to provide comments and feedback on this proposed criteria by 31 March, 2021 by submitting their comments and feedback to info@lhratingsglobal.com.

The criteria does not represent a comprehensive coverage but only addresses key rating factors to form our credit opinions and will be reviewed periodically.

Non-Bank Financial Institutions Rating Criteria

Lianhe Ratings Global Limited’s (“Lianhe Global”) non-bank financial institutions criteria were originally published on 16 July 2018. The current proposed criteria primarily elaborate on the details of the factors and sub-factors that we consider when assigning ratings to non-bank financial institutions.

Lianhe Global invites market participants to provide comments and feedback on the proposed criteria by 31 March 2022 by submitting their comments and feedback to info@lhratingsglobal.com.

No changes to our existing ratings are expected to result from the adoption of the proposed criteria, as it primarily relates to further supplement to and elaboration of the original criteria published on 16 July 2018.

Structured Finance Criteria

Lianhe Ratings Global Limited’s (“Lianhe Global”) structured finance criteria were originally published on 25 June 2019. The current proposed criteria primarily elaborate on the detailed elements and factors that we consider when assigning ratings to structured finance transactions.

Lianhe Global invites market participants to provide comments and feedback on the proposed criteria by 31 March 2022 by submitting their comments and feedback to info@lhratingsglobal.com.

No changes to our existing ratings are expected to result from the adoption of the proposed criteria, as it primarily relates to further elaboration of the original criteria published on 25 June 2019.

Parent-Subsidiary Linkage and Notching Criteria

Lianhe Ratings Global Limited (“Lianhe Global”) applies the parent-subsidiary linkage and notching criteria to corporate entities where we consider that the linkage between the rated entities and their respective parents may influence the rated companies’ credit profiles. The parent can be a private company or a government/state-owned entity which may factor in direct/indirect support from the government owner.

Lianhe Global invites market participants to provide comments and feedback on this proposed criteria by 31 March, 2021 by submitting their comments and feedback to info@lhratingsglobal.com.

The criteria does not represent a comprehensive coverage but only addresses key rating factors to form our credit opinions and will be reviewed periodically.