CRISP provides credit rating services for debt obligations by private and public entities. Private entities include organizations registered and authorized by the Securities and Exchange Commission to issue debt instruments for sale or re-sale in the market. Public entities shall include local government units, government owned corporations, or national government agencies authorized to issue debt instruments.
The credit rating process at CRISP officially begins with a written rating request from the debt issuer or its duly certified representative.
A team of credit rating analysts is assigned by CRISP management to the issue to initiate a review of the documents and information submitted by rating applicants and to determine the additional documents and information that are necessary to commence the rating process.
Ratings assigned by CRISP are based on data submitted by the issuer that include the company’s audited financial statements for at least three fiscal years, feasibility studies and historical and projected market share. CRISP analysts are expected to conduct a field visit to help their assessment of the issue’s market and meet the management team of project proponent.
CRISP management may opt not to conduct a field visit if documents submitted and management meetings were deemed adequate to perform an assessment of the proposed project.
When all the necessary documents and information are submitted, presented and discussed by the issuer, CRISP analysts shall then proceed to convene a rating committee meeting to present their report, analysis and rating recommendation. After deliberation on issues that include the project’s market feasibility, industry and economic trends, members of the rating committee will assign a rating to represent their assessment of the factors that may affect the creditworthiness of the project proponent.
The CRISP analyst assigned to the issue will then communicate the results of the rating committee deliberations and discuss with the issuer or its authorized representative the factors that led to the determination. Issuers may appeal a rating decision by the committee and submit new information that has not been initially submitted to CRISP.
Appeals are taken up by the committee only if new information is submitted. Based on new information, the rating committee may or may not change the earlier rating assignment to the issue.