Our Open Credit Rating represents the opinion of a credit rating agency from the qualitative and quantitative information of the prospective debtor, including information provided by the prospective issuer and other non-public information obtained by our analysts.
The FV Open Ratings Framework maximizes access to and incorporation of relevant credit risk factors with the help of an effective quantitative model, then the Expert Committee considers and incorporates appropriate adjustments based on their judgment of factors unique to the rating target. Compared with traditional rating agencies that rely more on individual analyst’s subjective judgments, the FV Open Ratings framework pays more attention to objective quantitative models, making the rating framework more stable, driven by objective information, more transparent, more impartial, and with faster response to market changes.
The FV Open Ratings framework also enables rapid monitoring and adjustment to improve applicability. This rating framework, which has been verified by a domestic panel of experts and is proprietary property to FV Open Ratings, was key to the Hong Kong Securities and Futures Commission (SFC) granting the company a Type 10 license for rating activities.
Our Expert Committee evaluates elements that the quantitative algorithm cannot effectively cover, including individual firm-specific information such as changes in management, country-related risk, economic cycles and other characteristics specific to the rating target. We rely on data and computer algorithms to carry out error prone computations, greatly enhancing speed and consistency, while intelligently integrating experience and perspective of experts into the final ratings. The result? Simply the best in class rating methodology we have seen.