KOBIRATE’S PRINCIPLES AND RULES FOR CORPORATE CREDIT RATING
1.The Kobirate corporate rating, in compliance with its publicized rating methodology, is finalized by taking into account all data of corporation. Any modifications in the Kobirate rating methodology are announced to public giving the reasons therefore.
2-Kobirate revises regularly its corporate credit rating methodology, It also arranges for regular revision of its method so as to cover retrospective tests at periods of minimum one or three years.
3- The Kobirate corporate rating process is initiated upon execution of the rating service agreement minimum term and conditions of which are specified in directives of the regulatory organizations. For the validity of the rating agreement, a professional liability insurance policy to be attached to the agreement must be taken out and sent to the related regulators.(Decisions to be adopted to the Supervisory Authorities are considered in respect of professional liability insurance.)
4- The corporate credit rating methodology will be based on the financial statements of the firm to be rated for the last three to five years, whose conformity to be generally accepted accounting principles established by Turkish Accounting Standards Board are approved by independent audit companies or professionals licensed to conduct audit under act no:3568. Firms with a business life less than such time are rated accordingly.
5- Being free of any influence and pressure, Kobirate fulfils its duties within the authority limits conferred to Kobirate, whose powers are laid down in banking act no:5411 and regulations made by BDDK(BRSA) and SPK(CMB) relating to the authorisation of operations of rating firms. Professional and ethical rules to be complied by Kobirate and all of its employees are applied to ensure that a confidence that Kobirate fulfills its duties in absolute impartiality is given to the public and Financial Markets and that the confidence is sustained. The ethical rules Directive form an integral part of Kobirate corporate credit rating methodology.
6- Kobirate does not undertake for which it is not eligible in terms of know-how, capacity and staff. It introduced its Human Resources Directive to form its working team allowing for sustainability, impartiality of rating process. At Kobirate it is essential that service contracts are concluded for individuals employed out of support and subservices.
7- Kobirate has created and made available its website to enable all local and international organisations to have access to all credit ratings assigned equally and fairly: www.kobirate.com.tr.
8- Kobirate complies with the sector and country data underlying the corporate credit rating, stored in Kobirate’s database, primarily the information provided by The Central Bank of Turkey, Statistics Institute of Turkey, The treasury of Turkey, State Planning organisation, Professional associations such as union of chambers and commodity exchanges of Turkey, non governmental organisations, labour unions, Investment banks, and Kobirate itself.
9- The sector codes used at Kobirate’s database are in conformity with the NACE(Statistical Classification system for Economic Activities) introduced by the European Union.
10- In order to monitor and control the risks encountered in the rating process, Kobirate has established rules for internal control and Risk Management Systems which the directive covers all employees forming an integral part of the rating methodology.
11- As a result of the studies and proposal made by the Kobirate rating experts, the corporate rating grades to be assigned by Kopbirate are finalized by Kobirate Credit Rating Committe. The composition and the attributes of Credit Rating Committee will be submitted to the related regulatory organisations.
12- The corporate credit rating system developed by Kobirate, the operational notes taken down by the rating expert, attachments thereto, information obtained from the organisations, the report containing the rating expert’s proposals and the final report of credit rating committee are stored in digital environment and archived for periods required by regulators.
13- Kobirate has announced the principles and procedures for Unsolicited Rating Methodology shared with the public via its website.