Regulatory Alerts2025-10-01
Added · Updated
Bank Loan Rating
VIS Credit Rating Company Limited issues Bank Loan Ratings (BLRs) to assess the risk of timely interest and principal payments for specific bank financings, emphasizing counterparty banking behavior and collateral quality. The methodology outlines a structured rating process that evaluates financing positioning, repayment schedules, and security enforceability, applying a notching policy where secured loans typically receive one to three notches above the borrower’s entity rating. Ratings are mapped to VIS’s issuer/issue scale based on loan tenor, appended with the "(BLRs)" suffix, and designed to enhance market liquidity by providing an objective basis for pricing and secondary market trading.
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