Corporate Scorecard Gets Green Light

June 23, 2010 by · Leave a Comment
Filed under: General, The Rating Agencies 

Corporate Scorecard (CSC) has joined Australia’s credit ratings market after getting the official go-ahead from Australian Securities and Investment Commission (ASIC) to operate as a licensed credit rating agency.

The company joins Standard & Poor’s, Moody’s Investors Service and Fitch Ratings as credit rating agencies licensed by ASIC. Says General Manager Brad Walters, “CSC has invested heavily in fulfilling all of the regulatory requirements and ongoing monitoring obligations.”

Corporate Scorecard is paid by clients such as governments, companies and investors to assess the risk of counterparties, rather than by issuers to rate the securities they are selling.

“Whether it’s a wholesale investor looking at a particular issuer, or a government department assessing a particular company, they are our client and so the remuneration line for us is direct to them,” said Walters. “Therefore, we don’t have that inherent conflict of interest of being paid by the issuer.”

CSC is the first Australian-owned credit rating agency to obtain an Australian Financial Services License to provide credit ratings. Operating at various levels within government and private sector, the company has been in business since 1987.

Hooray for the free market! A “new” rating agency, with a new pay model emerged from the wreckage. No government subsidy, legislation, government ownership was needed.

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