Policy For Allocation And Rotation of Rating Analysts

Policy For Allocation And Rotation of Rating Analysts

Purpose

Beacon Ratings policy for allocation and rotation of rating analysts to rating assignments is designed to promote transparency, continuity and to avoid bias in the rating process.

Scope

The policy applies to the various individual rating analysts and rating teams as a group.

Rating teams

Beacon Ratings has organized its analytical staff into ratings teams. Each rating team comprises a team leader and a minimum of two analysts. Each analyst is assigned a portfolio of clients to ensure continuous monitoring and review. This portfolio comprises more than one business segment. The team leader supervises the work of the analysts in his team. Rating team leaders are trained to become sector specialists, responsible for tracking developments in the assigned sectors, publishing updates on a regular basis and participate in rating methodology reviews.

Rating decisions

All rating decisions are taken by the rating committee and not by any rating analysts or team leader.

Rating committee

Rating Committee comprises a minimum five (5) members with rich background in industry, academia, and professional practicein the fields of accounting, finance, economics, management, banking, statistics and regulatory agencies. Rating Committee shall have a minimum-voting quorum of three (3) members with at least two External Experts. A rating team leader assigned to the client makes presentation to the Rating Committee.

Declaration of interests

All staff members are required to declare their interests in entities, issuers and debt instruments on a half-yearly basis. Rating team and rating committee members and their personal relations with interests in entities, issuers or debt instruments shall not participate in rating analysis and voting on rating committees of such clients.

Rotation mechanism

Beacon Ratings organizes rating analysts in a manner that:

(a) Each analyst will not deal with the same client for more than three years.

(b) Team leaders will not deal with the same client for more than five years.

(c)At least one-year cooling period shall be observed before a client is reallocated to an analyst or team leader.

Policy administration

Compliance officer is responsible for implementing this policy to the later.