CSR Corporate Governance Code
Credit ratings have gained
significant importance in the capital markets. A rating is an
opinion by a credit rating agency on the relative credit quality of
an entity and the likelihood that it will meet its financial
obligations in a timely manner. A credit rating may be used by
different participants of the financial markets. For issuers,
ratings can play a significant role in broadening access to capital
markets and reduce the cost of funding. Ratings also provide
substantial information to investors regarding the quality of the
issuer’s financials, future prospects and credit worthiness, and
therefore is a useful tool to support their investment decisions.
For lenders, ratings help assess and compare the credit worthiness
of borrowers. As for regulators, ratings can improve capital market
efficiency, and reduce information asymmetries and imbalances.
Rating (CSR) was incorporated in an attempt to fill the vital
role of credit rating agencies in Kuwait and the MENA region.
Operating as an independent local credit rating agency, CSR
specializes in issuing rating opinions about the relative credit
risk of issuers in the MENA region. It is a unique initiative aimed
at fostering and supporting the development of the regional capital
market. CSR relies on financial statistical analyses, debt
structure analyses, and credit prediction models, while applying
methodologies and rating processes based on the best practices in
the industry to measure the operating and financial strength of
specific borrowers. CSR’s credit opinions are based on analysts'
evaluations and interpretations of information available publicly
and submitted by issuers.