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National Rating Agency has developed a new rating of creditworthiness of Russian issuers whose bonds are traded on the MICEX Stock Exchange
August 1, 2007
National Rating Agency (NRA) has completed the procedure of assigning its credit ratings to issuers whose bonds are entered into A1, A2, B and C quotation lists of the MICEX Stock Exchange. NRA’s methodology of assigning credit ratings enables to assess the credit quality of bonds and the solvency of borrowers. Bonds are rated on the basis of a considerable number of quantitative and qualitative parameters. According to K.Korishchenko, Chairman of the Board of the MICEX and Deputy Chairman of the bank of Russia, “this project will enable to further develop the Russian financial market and create a modern system of assessment of the quality of traded assets. It will also help to build the mechanism of refinancing credit institutions’ operations.” The credit rating for issuers will be published on the MICEX’s web site as additional information for participants in the securities market. At present, credit ratings for enterprises is published on NRA’s web site: www.ra-national.ru.
The MICEX Stock Exchange is Russia’s leading stock market. It organizes daily trading in securities of over 620 issuers, including Gazprom, RAO UES, LUKoil, Norilsk Nickel, Sberbank, Rostelecom, Surgutneftegaz, MTS, Tatneft and other blue chips with the total market capitalization of about 900 billion dollars. In 2006, the total volume of trading on the MICEX Stock Exchange amounted to 755 billion dollars. Trades in shares accounted for 550 billion dollars, which is over 90% of the total exchange-based turnover in the Russian market and about 70% of the global turnover of Russian assets (including GDRs and ADRs). Trading is held electronically, using an up-to-date trading and depository system, connected to regional floors and over 1500 remote terminals of 600 broker companies and banks in 100 Russian cities, which serve over 370 thousand investors. Growth of the volume of exchange-based transactions in corporate securities enabled the MICEX Stock Exchange to join the list of the world’s top 20 stock exchanges. At present the MICEX SE is the main center of formation of liquidity for Russian assets and international investments in stocks and bonds of leading Russian companies. In 2002 the MICEX joined the World Federation of Exchanges. The WFE is comprised of over 100 exchanges across the world which together account for 97% of the capitalization of the world stock market.
National Rating Agency is a private institution which has assigned ratings to participants in the financial market since 2002. At present, over 500 companies and banks across Russia have distant and individual ratings. NRA performs quarterly and monthly analyses of over 50 indicators. There are distant and individual ratings. Distant ratings are based on the analysis of financial reports only. The methodology of individual ratings is based on the qualitative analysis. NRA supports the business activity rating for non-bank credit institutions. Largest players on the financial market have NRA’s individual ratings. NRA’s materials are regularly published by periodic editions and electronic media (Vedomosti, Kommersant, Delovoi Peterburg, Profile, D-Shtrikh, Popular Finances, Finance, Izvestia, RBK and other media).
National Rating Agency carries out such important projects as the implementation of GIPS standards (jointly with large Russia auditors) and the development of a unified methodology of calculation of profitability of trust management. NRA interacts with Deposit Insurance Agency in minimizing the risks of placement of assets in management companies.
For more than 10 years NRA’s specialists have worked in risk management systems and analytical subdivisions of large companies and banks. This experience enables the Agency to support projects connected with developing risk management in Russia and perform the comprehensive assessment of risks on the Russian financial market.
At present, NRA’s ratings are used by risk managers of companies and banks to provide limits.
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