FAQs on Ratings
What is the minimum period required for the assignment of a rating? closed

In the proposal made to the issuer ARC Ratings presents a realization period for the analysis (the period between the delivery of the information requested by the issuer and the delivery of the Preliminary Report for Discussion by ARC Ratings, assuming that there will be no difficulty in scheduling the necessary meetings with the issuers top management). This period typically varies between 6 to 9 weeks, depending on the urgency of the issuer, the estimate of the complexity of the analysis performed and ARC Ratings workload.

To this period the issuer must add the time necessary to collect the requested information, to comment on the Preliminary Report for Discussion, as well as the time that the issuer deems necessary for the (possible) publication approval notation assigned, based on the Public Report Proposal, which is provided by ARC a few days after receiving the comments to the Preliminary Report for Discussion.

What is the cost of a rating process? closed

The amount charged by ARC Ratings to the issuer by assigning a rating is established on a case by case basis, and depends essentially on estimative of the analytical work that it entails done by ARC Ratings before submitting a proposal. This estimate takes into account factors such as the complexity of the issuer’s business (including number of businesses and subsidiaries) and the difficulties in obtaining a thorough knowledge of the sector(s) in which it operates.

What’s the validity of a rating since the moment it is assigned? closed

According to its methodology all ARC Ratings monitored ratings are valid for the entire period of the rated issues, but are subject at least to annual review, with the rating panel option to determine a more frequent review or as events warrant, except Sovereign Ratings, which are subject to review a maximum of three times a year (with a maximum period of six months between each review).   

Does the rating of a particular issue apply to other issues of the same issuer with the same maturity? closed

Rating is traditionally assigned to an issue, not being valid for other issues, because these can have different characteristics (for example, in terms of warranties or subordination) or to the issuer in general (an issuer's rating corresponds to the ability and willingness of the issuer in question to meet timely and in full any non-subordinated debt, which might not correspond to being able and willing to fulfil timely and in full a specific issue with certain characteristics).

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