Regulatory Alerts2025-04-01
Added · Updated
Instrument Rating Methodology
VIS Credit Rating Company Ltd. issued its updated Instrument Rating Methodology to standardize the evaluation of debt and hybrid securities across corporates, financial institutions, and microfinance banks. The framework establishes a two-step process that first determines an issuer’s base rating before applying specific notching guidelines based on security, seniority, and credit enhancements like third-party guarantees or cash collection mechanisms. Additionally, the methodology incorporates dedicated rating scales for Basel III-compliant bank capital instruments and explicitly addresses green bonds by assessing external review credibility alongside traditional credit quality.
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