Credit Rating Agency of Bangladesh

Topics: Credit rating, Credit rating agency, Collateralized debt obligation Pages: 12 (3384 words) Published: August 26, 2013

About CRAB:

Credit Rating Agency of Bangladesh Limited (CRAB) was established in 2003 at the initiative of some leading personalities in private sector and institutions of the country with the commitment to contribute to the development of the capital market by providing quality ratings and comprehensive research services. CRAB was incorporated as a public limited company in 2003 and received its Certificate for Commencement of Business in the same year.

In 2004, CRAB was granted license by the Securities & Exchange Commission (SEC) of Bangladesh (under the Credit Rating Companies Rules 1996) for operating as a Credit Rating Company. In 2009 CRAB has been accredited as an External Credit Assessment Institution (ECAI) by Bangladesh Bank, to provide rating of Bank Clients under Basel II regime. CRAB has established its reputation as a reliable source of independent opinion on risks based on systematic and standardized analysis done by professionals.

Mission :
Crab’s mission statement is to effect significant contribution towards qualitative development of the money and capital markets and enhancement of transparency of financial information and credibility of the corporate sector in Bangladesh for helping in the growth of investment.

Objectives :
▪ To perform the credit rating of various debt instruments as Commercial papers, Bonds and Debentures, Islamic bonds, Preference shares, Equity instruments, Rights issue, Mutual fund units etc. ▪ To perform grading of various institutions as banks, non banking financial institutions, insurance companies, corporations, non-corporations, societies, trusts or individuals or their clients for purposes requested clients or required by authorities. ▪ To accumulate, process and offer information services in broad areas for the use of organization and clients at different levels. ▪ To provide consultancy and advisory services in broad areas to our clients at different levels.

▪ To act as trustees of any debentures, bonds, securities, commercial papers or any other obligations and to exercise the powers of executor, administrator, receiver, treasurer, custodian in respect of such debts and securities.

CRAB’s Collaboration :

Technical Collaboration with ICRA: CRAB has a “technical collaboration agreement” with ICRA Limited of India, one of the leading credit rating agencies of the region. This collaboration has provided CRAB with facility for development of rating methodologies, for performing rating assignments and training our professionals. ICRA-CRAB collaboration facilitates sharing of resources and information base and professional expertise between the two organizations, much to the advantage of CRAB.

Member of ACRAA: CRAB is an active member of the Association of Credit Rating Agencies in Asia (ACRAA). ACRAA is a federation of domestic rating agencies of the Asian continent– including those of Japan, Philippines, Malaysia, Indonesia, Korea, India, Pakistan, China, Taiwan and Bangladesh, established with support and cooperation of the Asian Development Bank (ADB). As a member CRAB participates in all the activities of this association.

Code of Ethics : CRAB Adopts the Code of Ethics Stipulated by ACRAA. In the 15th Meeting of the Board of Directors of the CRAB held on 02 April 2006, the Board approved the adoption of Code of Ethics prescribed by Association of Credit Rating Agencies in Asia (ACRAA) Individuals involved with the credit rating process at member agencies shall agree to and abide by the following : 1. Credit Rating is a function of serious responsibility and any and all persons exercising the function shall view it as a matter of great trust. 2. Members of credit rating boards / rating committees and any staff member participating in any way in the credit rating decision making, shall always apply to the credit rating process the highest degree of integrity, competence, objectivity and thoroughness, worthy of the trust the...
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