Ratings

The rating history of National Rating Agency began since rating of brokers – members of National Association of Securities Market Participants, which was published during the first quarter of 2000. But the activity of agency was singnificantly expanded and the ratings members’ staff exceeded the number of NAUFOR members. The independency and sovereignty of the National Rating Agency begins that day, and now the amount and quality of its rating products have been significantly growing.

The rating with qualitative dividing on distant and personal have been traditionally leading in popularity among products. As a rule, a distant rating reviews monthly according to the quarter accounting given to Agency as questionnairies or balance sheets of companies. The information rendered verifies in respect of completeness and creditability of the above mentioned data. Subsequently the relaibility points are calculated using systems calculation of which is contained in rating patterns. During personal rating the special rating models are used, developed especially for each branch and tested in advanced risk management systems at the financial market that were estimated by experts. The qualitative information is a paramount at rating and financial indices also takes significant place in this process. The corporative management level of a company, risk management system and its work, company business diversification level, client base and asset quality, large partners and counterparts as well as clear strategy of company development could also be listed in qualitative indices cathegory. Thus the reliability or solvency rating is an aggregate index aimed at representation of quality of bank or company activity from information amount complete at the most, and namely the personal rating can be most interesting in this respect.

Nowadays the amount of personal rating is not as significant as against distant ratings but is steadily growing; therefore the distant ratings will gradually take another scale without letter ratings and relative.

National Rating agency rates more than 500 companies and banks including following rating projects:

• Investment companies rating; since March 2000.
• Asset managements rating; since September 2002.
• Russian banks rating; since September 2002.
• Foreign bank filials rating; since September 2002.
• Nonbank credit institutions rating; since February 2002.
• Non-financial sector institutions solvency rating; since June 2006.
• Issuers rating; since June 2006.
• Insurance companies rating; since September 2006.

The detailed methodologies were published in every sub-section according to this section orientations.

National Rating Agency rating scale