THE VALUE OF INDEPENDENCE

เป็นองค์กรที่จะต้องดำรงไว้ ซึ่งความเป็นอิสระในการวิเคราะห์ ความเป็นกลาง และโปร่งใส ซึ่งถือเป็น “ธรรมชาติ” ของความเป็น “ทริสเรทติ้ง”

การดำรงไว้ซึ่ง “ความเป็นอิสระ” (Independence) ก่อให้เกิด “คุณค่า” (Value) หลายมิติ
คุณค่าต่อลูกค้า
ความเห็นที่เป็นอิสระทำให้บทวิเคราะห์ของทริสเรทติ้งมีประโยชน์ต่อลูกค้า ลูกค้าจำนวนหนึ่งได้สะท้อนให้รับทราบว่า ได้นำบทวิเคราะห์ไปใช้ประโยชน์ในการพัฒนาองค์กรอย่างได้ผล
คุณค่าต่อพนักงานและองค์กร
การที่ทริสเรทติ้งจะดำรงอยู่อย่างยั่งยืนและอย่างมีคุณค่าต่อลูกค้าและสังคม พนักงานจะต้องตระหนักว่า ต้องทำงานอย่างมีหลักการ บนพื้นฐานของความเป็นอิสระในการวิเคราะห์ และมีความโปร่งใส ไม่มีความขัดแย้งในผลประโยชน์ ซึ่งจะทำให้องค์กรสามารถรักษาคุณค่านี้ไว้ได้อย่างยั่งยืน
คุณค่าต่อสังคม
ทุกวันนี้กระแสโลกได้มุ่งเน้นความสำคัญของ ความเป็นอิสระ เพิ่มขึ้นอย่างชัดเจน จะเห็นได้จากการที่ตลาดทุนทั่วโลกต่างส่งเสริมให้บริษัททั้งหลายเพิ่มสัดส่วนของ กรรมการอิสระ ให้มากขึ้น นอกจากนั้นในการพัฒนาทางสังคมและการเมือง บทบาทของ องค์กรอิสระ ก็เพิ่มมากขึ้นตามลำดับเช่นกัน ซึ่งเป็นการยืนยันว่ากระแสสังคมโลกให้คุณค่าของ ความเป็นอิสระ ว่าก่อให้เกิดประโยชน์ต่อการพัฒนาธุรกิจ สังคม และการเมืองอย่างแท้จริง

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FAQ

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FAQs

What you need to know about TRIS Rating
Answers to 17 important questions



1. WHO NEEDS CREDIT RATINGS?

Issuers that want access to debt markets. Issuers include either private corporation State-owned enterprise, financial institutions, sovereigns or local governments, etc. A credit rating expands the ability of a borrower to issue debt instruments quickly and efficiently. Furthermore, a good credit rating usually cuts funding costs substantially.
Investors too need credit ratings. A credit rating is an efficient tool that individual and institutional investors use to evaluate the variety of debt instruments available today.
Creditors and financial institutions look at credit ratings when they evaluate the credit risk of potential borrowers. A company can also use its credit rating to establish its creditworthiness since a good credit rating can enhance a company’s reputation when bidding on projects or negotiating contract terms.
Some companies use credit ratings as guidelines to improve operations and as an important first step as they investigate whether or not they should issue debt instruments.

2. WHY DO COMPANIES CHOOSE TRIS RATING?

TRIS Rating has built a reputation among investors for assessments of creditworthiness that are impartial, consistent and timely. TRIS Rating also studies and keeps current on the variety of debt instruments used today. Investors know that in studying these issues, TRIS Rating devotes valuable resources and time that are beyond the means of any single investor’s capabilities.
Furthermore, after more than 20 years of operation, TRIS Rating knows the Thai business environment well.

3. WHAT KINDS OF RATINGS DOES TRIS RATING DO?

TRIS Rating assigns company and issue ratings  to corporation and financial institutions. Over the last decade, TRIS Rating has rated companies, corporate debentures, secured debentures, unsecured debentures, structured finance, project finance, guaranteed debentures and securitization issues.
TRIS Rating keeps pace with the demands of the market and the changing face of debt finance.

4.

WHAT KIND OF INFORMATION DOES TRIS RATING NEED IN ORDER TO FORM AN ADEQUATE RATING OPINION?

Since access to complete, accurate and reliable information is at the heart of TRIS Rating’s work, our analysts need information in three areas:
Industry analysis: To assess the company’s operating environment, we look at the nature of the industry under consideration, the pattern of business cycles and competition within the industry, the technological demands of the industry, the regulatory environment and industry prospects.
Business analysis: To assess business and operational risks, we look at the company’s management and human resources by examining its organizational structure; we look at the company’s operational structure, especially marketing and corporate strategies; we evaluate the company’s competitive position to determine its market strengths in order to evaluate its operating efficiency. We also look at the company's relationships with its parent company, to determine the kind and level of support the company can count on, and with its subsidiaries or related companies to determine if these are burdens or benefits.
Financial analysis: We review the company’s financial policies and look at profitability and efficiency, capital structure, cash flow and financial flexibility. We also review a company’s leverage tolerance, dividends, acquisitions, and disposition strategies.
Among the documents we examine are the company’s filings with the Securities and Exchange Commission (SEC), the Stock Exchange of Thailand (SET), and the Ministry of Commerce as well as its annual reports for at least the last five years. We host a series of discussion meetings with management and key executives. We also consult with outside experts who know the industry under consideration.

5.

HOW DOES TRIS RATING HANDLE CONFIDENTIAL BUSINESS INFORMATION?

We take confidentiality very seriously. Our analysts sign confidentiality agreements, and analysts never discuss their cases with people not on the credit analysis team – not even other TRIS Rating personnel. Also, before TRIS Rating releases an announcement about a company’s credit rating, we send a draft rating report to the company to review. This ensures that no confidential information is released to the public.

6. DOES A COMPANY NEED A FINANCIAL ADVISOR TO HELP WITH THE CREDIT RATING PROCESS?

An experienced adviser can facilitate coordination between the company and TRIS Rating; however, a financial adviser is not necessary. Our analysts have the appropriate knowledge to review data pertinent to the rating, and the experience to address the relevant risks. To help the process along, our analysts can meet with the company’s key personnel to explain our rating methodology and process. This is done as a courtesy and carries no commitments or obligations on either party.

7. HOW DOES THE RATING PROCESS BEGIN, AND HOW LONG DOES IT TAKE?

After the company signs a contract with us, it is given a list of preliminary information that our analysts need. As our analysts start gathering additional information from reliable sources and industry experts, TRIS Rating’s management meets with the company’s top executives to discuss the company’s policies, strategies, outlook, plans and prospects.
Once we have all the information, we need about six to eight weeks to complete the rating analysis.
The lead analyst for the case prepares a detailed report on the company and discusses the case with TRIS Rating’s analytical team and rating manager. They assess the company’s business situation based on information collected. Once complete, the data and analysis go to the credit rating committee for consideration.

8. WHO SITS ON THE CREDIT RATING COMMITTEE AND WHAT DOES IT DO?

The credit rating committee examines all the information gathered, hears an assessment from the lead analyst and then decides the rating.
The credit rating committee comprises TRIS Rating’s management team and the lead analyst of the case.
In the course of the rating committee's discussions, often a consensus about the rating will arise naturally. If that does not happen, a simple majority vote by the committee determines the rating.

9. WHAT IF THE COMPANY DISAGREES WITH THE RATING COMMITTEE’S DECISION?

A company can appeal the rating committee decision within seven working days after acknowledging the rating. If that happens, the company is asked to provide additional information. The rating committee then reconvenes to consider the matter, and will decide whether or not to change the rating. The appeal process applies only to new ratings, and a company can appeal only once.

10. HOW IS A RATING ANNOUNCED?

If the company agrees with the rating and wants it announced to the public, we send a credit rating announcement to various media, including newspapers, radio, television, and online news services. The announcement also appears on our website. Our clients and the subscribers to our information service receive the full rating report when it appears in CreditNews, a publication of TRIS Rating available in English

11.

CAN A COMPANY KEEP ITS RATING PRIVATE?

Yes, it can. While obviously the primary reason for credit rating is its usefulness to investors, a credit rating -- even an unpublished one -- is also useful information for the firm rated. Many companies find the rating process is an educational experience that prepares them for the eventual launching of a debt issue. On the other hand, a company can use an unsatisfactory rating as a guideline for improving its operations and/or financial status.

12. HOW OFTEN IS A RATING UPDATED?

TRIS Rating follows up the rating process with rigorous monitoring, watching the company and the industry on an ongoing basis for any significant events or developments that could affect the rating. This monitoring lasts for the lifetime of the rating agreement. We review each company at least once a year and this new rating replaces the earlier rating. The updated rating can be an upgrade, a downgrade or an affirmation of the former rating.
At anytime during the monitoring process, we can issue two types of announcements:
1 A CreditAlert is a public warning that something has happened -- either in business conditions or an event within the company -- that could affect the rating. A CreditAlert means that TRIS Rating is assessing the events, and it can be designated as either “positive”, “negative” or “developing” depending on the particular situation. The existing rating continues in force until we can make a full assessment.
2 A CreditUpdate is a review of a previously issued rating. It is released after we have assessed the impact of a significant occurrence, and it includes supplementary information to the earlier published rating. A CreditUpdate announces whether a rating has been “upgraded”, “downgraded”, “affirmed” or “canceled”.

13. WHAT DO YOU MEAN WHEN YOU SAY, "RATINGS ARE NOT RECOMMENDATIONS TO PURCHASE OR SELL ANY PARTICULAR DEBT INSTRUMENTS"?

That is right; a rating is not a recommendation to buy, sell or hold a particular security. It is a judgment or opinion of a credit rating agency regarding the creditworthiness of a company, with respect to a particular debt instrument, based on relevant risk factors. The decision to invest should be made based on an investor’s individual judgment and requirements. since investors’ risk tolerances vary. One investor might never consider an issue rated below “A”, while another might eagerly purchase an issue rated “BB+” accepting the higher risks for the opportunity to earn higher returns. Large institutions may have fiduciary guidelines and requirements imposed either by their boards or by regulators that prohibit them from investing in non-rated issues or issues below predetermined levels.
Investors also have other concerns besides credit quality, such as coupon rates, maturity, yield, tax considerations, and other non-credit factors.

14.

WHO OWNS TRIS RATING?


1.TRIS Corporation Limited 51%
2. S&P Global Asian Holdings Pte. Ltd. 49%

*As of August 2016.

15.

HOW DO WE KNOW THAT THE RATING ASSIGNED BY TRIS RATING IS UNBIASED?

TRIS Rating’s organizational and operational structures create an environment of neutrality and independence. We can list some of the factors that ensure such an environment:
The shareholding structure we share with our parent company, TRIS, is diverse, representing government, private and international institutions, banks, financial and securities institutions, and insurance companies.
The structure of the board of directors was designed to avoid the influence of its shareholders on the rating process. Only half of the seats on the board of directors are allocated for representatives of the shareholders; the rest are outside experts.
The board of directors is a policy board and sets the overall strategies. The board and its members have no involvement in the rating process.
Similarly, while the board offers direction and guidance, it does not interfere in the president’s management of the company. Furthermore, it should be noted that, the president is not involved with the rating analysis process.
The analysts work independently, but they must be able to defend their evaluations to the rating committee.
TRIS Rating enforces a strict code of ethics among all staff members, requiring them to follow company rules and to perform all functions in a transparent manner.

16. WHAT IS THE DIFFERENCE BETWEEN RATINGS ASSIGNED BY TRIS RATING AND RATINGS ASSIGNED BY INTERNATIONAL CREDIT RATING AGENCIES?

TRIS Rating assigns ratings on baht bonds exclusively, under the national-scale rating system, whereby a company’s creditworthiness is evaluated in relation to other entities located in the Kingdom of Thailand. We assign companies with the highest creditworthiness a rating of AAA. Unlike international-scale credit risk opinions, our national-scale ratings do not address either direct sovereign risks of the government or foreign exchange rate risks. Country risk factors are considered only to the extent that they differ among business sectors and issuers in Thailand. Therefore, the ratings assigned by TRIS Rating are not directly comparable with ratings assigned by international credit rating agencies.

17.

HOW DID TRIS RATING DEVELOP ITS RATING METHODOLOGY?

TRIS Rating has more than 15 years of credit rating experience, first at TRIS and now at TRIS Rating. In our initial three years, we received technical assistance from Standard & Poor’s in developing our credit rating methodology. Over the years, we have refined our methodology to best reflect the Thai situation.
We have further developed our methodology through contact with the Association of Credit Rating Agencies in Asia (ACRAA), a regional organization TRIS Rating co-founded to focus on developing and promoting rating skills, a code of ethics among members harmonized ratings and standardized rating processes.

Moreover, in November 2011, McGraw-Hill Asian Holdings (Singapore) Pte. Ltd, an intermediary holding company wholly owned by McGraw-Hill Companies, the parent of Standard & Poor’s, reached an agreement to purchase 5% shares in TRIS Corporation. The transaction marks the beginning of a partnership between Standard & Poor’s and TRIS Rating. Both companies together will advance the roles of credit rating agencies in domestic and global financial markets.