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Guidelines for the Revision and Withdrawal of Credit Ratings

This policy establishes the formal principles and procedures governing the revision and withdrawal of credit ratings conferred by the organization. Its objective is to uphold transparency, consistency, and integrity throughout the rating process, thereby safeguarding the interests of investors and relevant stakeholders.

This policy applies to all credit ratings, whether public or private, assigned by Credit Rating and Investors Services, Philippines Inc. (CRISP) to issuers and financial instruments.

Policy on Rating Revision

Definition

A rating revision is defined as any modification—either an upgrade or downgrade—of the credit rating assigned to an issuer or instrument, prompted by the emergence of new information, alterations in creditworthiness, or other pertinent factors.

  • All credit ratings are subject to continuous monitoring and must be reviewed at a minimum on an annual basis, or more frequently should material developments arise.

  • Revisions to ratings are predicated on rigorous analysis, relevant data, and the application of approved rating criteria and methodologies.

  • Every rating revision undergoes internal review and is subject to the approval of the designated rating committee.

  • Comprehensive documentation and communication of the rationale for any rating change to the rated entity are required prior to public disclosure, except in cases where regulations necessitate immediate announcement.

  • All rating actions must be disclosed expeditiously to the public (for public ratings) or to the relevant parties (for private ratings) in a transparent and consistent manner.

 Triggers for Rating Revision

 Substantial changes in the financial or operational performance of the rated entity;

  • Macroeconomic or industry-specific developments influencing creditworthiness;

  • Regulatory or legal events with an impact on the rated entity or instrument;

  • Material errors or newly surfaced information subsequent to the initial rating assignment.

 Policy on Rating Withdrawal

 Rating withdrawal refers to the formal removal of a credit rating previously assigned to an issuer or instrument, whether initiated at the request of the rated entity or determined by the organization’s discretion.

 Conditions for Rating Withdrawal

 Full redemption, maturity, or cancellation of the rated debt instrument;

  • Rated entity ceases to exist or is subject to merger or acquisition;

  • Inadequacy or absence of sufficient information to maintain a credible rating;

  • Request by the rated entity, subject to regulatory and contractual obligations;

  • Organization’s decision in accordance with internal policy or regulatory guidance.

 Procedure for Rating Withdrawal

  • Prior to withdrawing a rating, the organization shall, where practicable, provide reasonable notice to the rated entity, except in circumstances necessitating immediate withdrawal.

  • The justification for any withdrawal must be meticulously documented and disclosed.

  • All withdrawn ratings are to be clearly marked as “Withdrawn” in all official communications and relevant databases.

  • Where feasible, the reason for withdrawal should be publicly stated in organizational disclosures.

 Disclosure and Record Keeping

 All rating revisions and withdrawals must be disclosed in strict accordance with applicable regulations and the organization’s disclosure policies.

  • Comprehensive records of all rating actions, including supporting documentation and rationales, must be maintained for the duration prescribed by law or internal policy.

Review and Amendment

 This policy shall be subject to periodic review and may be amended to reflect changes in regulations, market practices, or the organization’s operational experience.

Effective Date

This policy takes effect as of October 8, 2025, and supersedes all prior policies or discussions by CRISP regarding the revision and withdrawal of credit ratings.