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S&P Global Ratings receives first-of-its-kind approval to enter China domestic bond market


News provided by

S&P Global Ratings

Jan 28, 2019, 09:30 ET

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NEW YORK, Jan. 28, 2019 /PRNewswire/ -- S&P Global Ratings has received formal notification that it is permitted to establish and operate a Credit Ratings Agency (CRA) in China's domestic bond markets, following confirmation that its filing with the People's Bank of China Operations Office (Beijing) has been formally accepted, and its registration application with China's National Association of Financial Market Institutional Investors (NAFMII) has also been approved.

The historic approval marks the first time that a company wholly owned by an international CRA has been able to rate domestic Chinese bonds.

S&P Global Ratings' domestic Chinese entity, S&P Ratings (China) Co., Ltd.  (Chinese: 标普信用评级(中国)有限公司), will operate in China as S&P Global (China) Ratings and 标普信评. Simon Jin, currently head of S&P Global in Greater China, is the inaugural CEO. 

Under the terms of the NAFMII approval, S&P Global (China) Ratings will be authorized to rate issuers and issuances from financial institutions and corporates, structured finance bonds and Renminbi denominated bonds from foreign issuers (Panda bonds).

"We are honored to establish the first CRA wholly owned by an international investor in China to serve its domestic bond markets," said Douglas L. Peterson, S&P Global President and Chief Executive Officer. "This announcement reinforces our belief that we are uniquely placed to meet the substantial demand from Chinese issuers and investors for transparent, globally understood and reliable credit ratings, data and research. Today's notification serves as an affirmation that we are best placed to provide essential credit insights to the Chinese domestic bond market – already the third largest in the world."

"This approval is the latest step in an ongoing, thoughtful dialog with China's regulators about the future they envisage for their financial markets," said John Berisford, President, S&P Global Ratings. "We believe that we are best equipped to provide an independent opinion on China's debt markets as they develop, and we are ready to play our part.

"We have been very encouraged by the strong interest from our existing cross-border issuers in our new domestic business, and in the initial phase we will work closely with these same issuers towards ratings for their domestic Chinese debt," Mr Berisford said.

Further details about S&P Global (China) Ratings' commencement of operations will be announced in due course.

The company will also provide further comment during the Fourth Quarter 2018 earnings call, scheduled on February 7, 2019.

*****

About S&P Global 
S&P Global (NYSE: SPGI) is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. The Company's divisions include S&P Global Ratings, S&P Global Market Intelligence, S&P Dow Jones Indices and S&P Global Platts. S&P Global has approximately 20,000 employees in 31 countries. For more information visit www.spglobal.com.  

About S&P Global Ratings
S&P Global Ratings is the world's leading provider of independent credit ratings. Our ratings are essential to driving growth, providing transparency and helping educate market participants so they can make decisions with confidence. We have more than 1 million credit ratings outstanding on government, corporate, financial sector and structured finance entities and securities. We offer an independent view of the market built on a unique combination of broad perspective and local insight. We provide our opinions and research about relative credit risk; market participants gain independent information to help support the growth of transparent, liquid debt markets worldwide. For more information, visit www.spglobal.com/ratings.

 

Regulatory Affairs and Disclaimers | Privacy and Cookie Notice | Terms of Use

Copyright © 2019 by Standard & Poor's Financial Services LLC. All rights reserved.

 

No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

 

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

 

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

 

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

 

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and http://www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.

 

Australia

 

Ratings are statements of opinion, not statements of fact or recommendations to buy, hold, or sell any securities or make any other investment decisions. S&P Global Ratings Australia Pty Ltd holds Australian financial services license number 337565 under the Corporations Act 2001. S&P credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act). Australian users should only access information about S&P's products and services from www.standardandpoors.com.au. Other S&P Websites are not intended for Australian users.

 

STANDARD & POOR'S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor's Financial Services LLC.

 

To manage your S&P Global Ratings subscription preferences, please click here.

 

S&P Global Ratings, 55 Water Street, New York, NY 10041

SOURCE S&P Global Ratings

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