Unsolicited Rating Methodology


  1.     General

Under paragraph of Article 20 of the Directive of B.R.S.A. on Rules for Authorisation and Operations of Rating Firms, promulgated on Official Gazette of 29.09.2007, number 26658, and the procedure and rules for unsolicited rating, specified in paragraph e of Article 21 of the CMB’s Directive on the Rating Process and Rating Firms, promulgated on Official Gazette of 12.07.2007, number 26580, the procedures and rules of Kobirate International Credit Rating and Corporate Governance Services Inc. (Kobirate) for unsolicited rating follow:

  1.       Kobirate may achieve rating based on publicly available data without firm’s request..
  2.       The decision of the Board is required for Kobirate in order to rate on demand.
  3.       The critical element in rating services to be performed by Kobirate independent of request is the fact that information available to the public contain details sufficient for a sound rating service.
  4.       Rating service is not provided when Kobirate has no access to adequate data.
  5.       For unsolicited rating, the concept of satisfactory data covers the entirety of financial data and a major part of non-financial data which comply to the Kobirate Rating Methodology and which are announced by the firms to the public.
  6.       In order to initiate the process of unsolicited rating,, it is precondition that information specified in item 5 are accessible.
  7.       Rating processes of unsolicited rating are carried out by Kobirate for at least 4 fiscal periods and revised semi annually and the results therefore are shared with the public.
  8.       For rating processes of unsolicited rating, Kobirate will not require any data and document from the firms involved.
  9.       It is essential that the process of unsolicited rating is carried out in strict confidentiality.

    Work Processes of Unsolicited Rating

  1.       Upon notice in writing to the management of company concerned of the fact that their business is made by Kobirate subject to unsolicited rating after the resolution of the Board of Kobirate, the rating process of unsolicited rating begins.
  2.       The result of unsolicited rating is reached by analysing the firm’s financial and non-financial data of public knowledge in accordance with the Kobirate Rating Methodology.
  3.       It is a discretion of the firm being rated unsolicited to share its information other than those shared with the public.
  4.       Prior to disclosure to public, the result of  rating carried out by Kobirate are notified to the firm in writing. The letter is sent to firm by registered mail with receipt
  5.       There is a 7-day waiting period to announce the results to the public after receipt by the firm of the results of Kobirate’s Rating
  6.       In case of no revert by the firm concerned at the end of such period, the results are notified by Kobirate to B.R.S.A., CMB, ISE on the first business day following the end of the 7-day period and the results are announce to the public via the website.
  7.       Where Kobirate is notified in the 7-day waiting period that additional information and documentation will be voluntarily provided by the firm, within at least 10 days and maximum 30 days of receipt by Kobirate of information and documentation, the rating process will be revised and finalized. After notification in writing to the firm of the rating results, they will be announced to the public.
  8.       Should Kobirate have reason that it is attempted to delay the provision of information and documentation, the rating grade reached by information of public knowledge will be disclosed to the public.
  9.       Kobirate will approach favourably to firm’s request for discussion in rating prosesses carried out by Kobirate independent of demand.
  10.   Kobirate agrees to receive supplementary information and documentation provided by the rated firm at any phase of rating process, it may revise the rating results assigned if such information and documentation are important to affect the rating results. The revised results are announced to the public.
  11.   In any phase of rating processes, the rating process initiated by Kobirate may be turned into one based on demand according to the firm’s request. In such a case, the copies of agreements executed are sent to the regulators pursuant to the regulations.
  12.   The rating processes of unsolicited are carried out pursuant to regulations made by the regulators in this respect.