What is Corporate Governance Rating?

The Corporate Governance Rating is a system that audits whether or not the firm’s management structures and management styles, the arrangements for shareholders and stakeholders and the process of informing in transparency and accuracy are performed in accordance with the modern corporate governance principles and assigns a grade corresponding to the current situation.

What is Basel II?

Basel II is a whole of standards determining the minimum amount of capital that banks should hold against all the risks they undertake; it aims to ensure that banks continue their operations with a healthy structure.  

What is credit rating?

It is the process of fair and objective assessment and classification of companies’ ability to repay their credits, risk positions and ability of payment of enterprises, as well as risks of capital market instruments – representing liability – to meet their liabilities of principal capital, interest, etc. in time. 

What is the aim of Basel II?

Basel II aims to ensure that banks continue their operations with a healthy structure, avoiding any “trust” issues. It also aims to define and measure risks and keep sufficient reserves in the banks.

How will the companies be classified according to Basel II?

What is Corporate Governance?

Corporate governance can be described in many different ways. In a broader sense, in the modern life it is the arrangement of management at any organization, established by people to reach a certain goal. In a more limited sense, it represents all laws, regulations, codes and practices that enable an enterprise to attract human and financial capital and to work efficiently, by respecting social values and creating economic value for its shareholders in long term (World Bank, Corporate Governance Manual).

Under which Main Headings Examination Conducted in Corporate Governance Rating?

1. Shareholders
2. Public Disclosure and Transparency
3. Stakeholders
4. Board of Directors

Which firms should have Credit Rating?

Those companies that are in abovementioned Corporate and Corporate SME categories should have credit rating.

Do you take only financial data of companies into consideration during Credit Rating?

During credit rating Kobirate conducts multipronged analysis of the company including corporate governance, quality of management and analysis of shareholder structure quality, financial risk analysis and business risk analysis methods. We don’t focus only on financial data.