Information Sources for Credit Rating in the Philippines
Credit rating analysts rarely take the information given to them by the company being evaluated at face value. Since the company is coming for a credit rating, most likely, the company will be “putting its best foot forward” so as to get the the best credit rating possible. It is then up to the rating analyst assigned to validate whatever information he or she is able to obtain.
Where might you, as an analyst, be able to get data to check out the information given to you by the company being evaluated. You may wish to check the following:
1. Newspapers, publications, and the internet: Newspapers, publications, and various websites can be good sources of company, economic, and industry information. The major newspapers likewise have their online versions which readers can easily access. The local newspaper BusinessWorld is always a good source of stories and even special industry studies.
2. Disclosures to the Philippine Stock Exchange (PSE), the Securities and Exchange Commission (SEC), or the Bangko Sentral ng Pilipinas: Publicly-listed corporations are required to inform the PSE and the SEC of important news and developments. You can check the sites of the PSE and the SEC for such disclosures. On a quarterly basis, publicly-listed firms submit their quarterly financial statements so you can also access these. Deadline is 45 days after the end of the quarter. For example, for the quarter end March, submissions must be in by May 15 and so on.
3. Government agencies and regulatory bodies: As applicable, you may want to check with or talk to relevant organizations if you think it will be useful in sourcing needed data. For example, talk to the Insurance Commission if you are studying an insurance company; the Department of Energy, the Energy Regulatory Commission (ERC), or PSALM for the power sector and the like.
(To be continued…)