Tuesday, February 28, 2017

Korea Ratings' credit ratings do not reflect the potential liquidity risk. "



[Korea financial newspaper goyounghun News] Korea Ratings is a risk assessment based on the unforeseen liquidity even grade fluctuation factors (Rating Trigger) This occurs because the evaluation factor for the predicted economic indicators do not reflect the current credit rating to potential liquidity risk He said it would.

Korea Ratings has held over the past 16 days the first quarter of 2017 Ombudsman meetings. The meeting took place in a discussion of the Rating Trigger liquidity risks related to credit rating reflects the mechanism, the rating change scenarios suggest the need, self-disclosure creditworthiness way.

If this place has become probable Rating Trigger occurs, such as Eland family and Daewoo Engineering and Construction practices took place a discussion of how they reflect the future potential liquidity risk in credit ratings. Following administration, it is important to avoid Rating Trigger is set to a high level of realization of the potential liquidity risk, and agreed that the two institutions to improve transparency for bonds riders relevant information needed

If a major credit event occurs, the opinion suggests that the need to provide information about the estimated grade control width for each scenario.

Criteria room songtaejun implementation "Given the controversial choice for the appropriateness of the scenarios, it is difficult to generalize evaluation policy," he said "However, the opinion that the introduction of case of possible scenarios analyzed by industrial structural factors industries need me Investors He explained it would be an important alternative to the protection and market stability. "



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