The Rating Committee

The Rating Committee is the group within a credit rating agency which gives the final credit rating. It can be composed solely of full-time employees of the company, established and independent professionals, or a combination of both.

Each member of the Rating Committee has one vote. The Committee is usually headed by a Chairman and who also has one vote like the rest of the Rating Committee members.

The Rating Committee spends a lot of time discussing the key rating factors at hand. The Committee needs to ensure that before a credit rating has been given, there is sufficient information on which to base whatever credit rating is assigned and that the basic analysis contained in the credit rating report is generally sound.

Rating Committee members are also very careful about Confidentiality of Information, Code of Ethics, and Conflict of Interest.

Leave a Reply

You must be logged in to post a comment.