The latest internal and external information can be included in the rating in a very short time;
All ratings are evaluated by the same quantitative method, eliminating analysts’ personal bias;
You can use the same quantification method to grade new rating targets;
By continuously reflecting new data or emerging risk drivers into the quantitative model, we ensure that the rating method continues to be effective;
Any changes in a rating are clearly reflected in changes in data values evaluated by the quantitative model and where applicable the documented opinions of the expert committee
The main body rating is a forward-looking opinion provided by us on the comprehensive strength and overall credit of the issuers. The main body rating of FV Open Ratings mainly provides the main body risk rating for the issuers, banks, suppliers, government agencies, etc.Evaluate the overall credit of the issuers through various aspects such as the operation and management quality, financial structure, debt repayment ability, operation ability, operation efficiency and development prospect of the issuers through the rating framework of FV Open Ratings, show the credit rating and explanation of the issuers to investors / intermediaries, and analyze the issuer’s advantages and disadvantages of the company, the basis for the feasibility study of the strategic plan of the bond issuance funds, the sharing of information of the bond issuers to improve their information transparency, the opportunity to enter the new market for the creditworthy bond issuers or the reduction of guarantee.
Debt rating is to assess the credit risk of a specific bond issued by the issuer.It is a forward-looking opinion based on the comprehensive strength and credit of the issuer in terms of specific financial risks, financial plans and the status of the bond industry. The debt rating takes into account the risk factors such as mortgage, guarantee, priority, the situation of the issuer, the debt industry, region, currency, issuance time and so on to enhance the credibility of the debt issuance. Through the assessment of the default risk of the issuers, the views on the ability and willingness of the issuers to fulfill their obligations are reflected.
Securitization and other financial structure rating asset securitization (ABS or structured finance) are defined as a financing instrument in which a company, through ABS, transfers rights to current or future receivables or other financial assets to an entity acting as a "special purpose vehicle" (SPV), which then issues securities to capital market investors. Receivables can be derived from income that generates stable cash flow income such as residential or commercial loans, credit card receivables or any other predictable source of income, and ABS may also include a revolving asset pool.The rating includes reviewing the legal structure of the transaction, reviewing asset management arrangements, reviewing the corporate credit rating of the sponsor and the cash flow model of the securitization, in which the expected loss on the principal of each payment is assessed and stressed based on a certain amount, and finally, the initial rating is used to evaluate the transaction with usA combination of qualitative assessment of specific factors, including operational risk, counterparty risk and legal structure, to arrive at the final rating of FV Open Ratings.
| Product | Function | Potential customers |
|---|---|---|
| Issuance rating | Bond issuance rating | All bond issuers |
| Corporate rating | Corporate rating for general monitoring,investment and payment decisions | ·Bond issuer ·The company requires rating of transactions and payment purposes |
| Structured finance rating | Rating of securitisation and other financial structures | ·Sponsor of asset-backed securities ·Collateral sponaor ·All structured finance sponsors |
| Sovereign / Municipal rating | National / temporary rating for borrowing and investment decisions | ·Asian Development Bank ·National Bank of China ·Multinational corporation ·State organization |
Remove or minimize subjective opinions and replace them with objective metrics. Maximize the ability to incorporate a multitude of relevant risk factors with an effective quantitative model.
FV Open Ratings uses trend results validated by recent data, as opposed to subjective forward-looking expectations which might be considered as guesswork
These metrics are an element of ratings that we measure independently and objectively, such as brand rankings.
For example, P/E ratio, R&D, etc. Indicators such as innovation and R&D investment are important drivers of future performance and are objectively measured and included in the FV Open Ratings model.
Components in grading
Distinguishing Risk Drivers
FV Open Ratings distinguishes between the factors and weights of these two types of economic environments.
SFC License 10 regulated rating agency to revolutionize the industry
Corporate Rating
Fixed Income Rating
Structured Finance Rating
Asset-backed Securitization Rating
Sovereign Rating
AI Rating System and Monitoring
A hierarchical network learning structure is employed
Existing major ratings agencies cannot replicate without cannibalizing their own revenue streams
The AI approach to corporate ratings developed over a 2.5 year period
Specifically designed to deal with highly uncertain and low volume default data (typical large data machine learning does not apply)
The FX rating approach uses AI methods and machine learning to reach a rating based on multiple inputs from big data
The FV Open Ratings report is available in Chinese, English, or a bilingual format for both Chinese and International readers, broadening the reach of the report.
The indicators of the rated companies are presented in a concise and standardized manner, both objective and easy to understand. Key risk indicators are displayed graphically with standardized indicators that quickly identify significant changes or extremes, making the report intuitively understandable.
Standardized metrics greatly enhance comparability between different entities.
All reports use reliable financial and other objective information to produce a quantified score based on the model. Based on that score, the expert committee can then consider and make adjustments based on factors which are unique to the rating target. The report will specify the extent of these adjustments and their rationale according to the categories under which they are permitted.
The rating report has received positive market recognition.