Post-event statement

Credit is vital for financing markets to operate and establish the credit worthiness of a debtor. In Asia, credit rating agencies continue to evolve and increase their capacity for effective and efficient rating procedures. Effective mechanisms to address the supply-side need for credit were discussed at the “ACRAA-ADBI Asia Credit Rating Forum.” This one-day event at ADBI was co-organized by the Association of Credit Rating Agencies in Asia (ACRAA) with the support of Japan Credit Rating Agency, Ltd (JCR). The Forum discussed the current credit rating challenges and opportunities in Asia including issues related to sovereign credit ratings; lessons for Asia on Islamic finance and Sharia Quality Rating; SME credit rating methodology and use of credit rating databases for emerging Asian countries; and development of local currency bond markets in Asia. Key issues and policy suggestions were shared by Shokichi Takagi, President and CEO of JCR, Naoyuki Yoshino, Dean of ADBI and other credit experts, with participants from developing Asia providing their country experience.

Purpose

The Asia Credit Rating Forum provides a platform among government officials, industry players and other stakeholders to exchange views on critical issues pertinent to credit ratings for sovereign, SME and Islamic finance, as well as issues related to the development of local currency bond markets in Asia.

Background

Over the years, various governments, international financial institutions and the private sector have worked together to promote interaction and exchange of ideas, experiences, and knowledge among credit rating agencies in Asia that would enhance their capabilities in providing reliable market information. Such a role has become more urgent with the development of Asia's bond markets and cross-border investments which require high quality credit rating institutions to function. For example, the Association of Credit Rating Agencies in Asia (ACRAA) undertakes activities promoting the adoption of best practices and common standards that ensure high quality and comparability of credit ratings throughout the region, following the highest norms of ethics and professional conduct.

To better understand the credit rating situation in developing countries in Asia and to develop appropriate recommendations to improve the current outcomes, ADBI and ACRAA will jointly organize the “Asia Credit Rating Forum” on 10 July 2015 in Tokyo, with support from the Japan Credit Rating Agency, Ltd (JCR). In particular, the dialogue aims to bring together officials and industry experts from developing Asian countries to exchange views on (a) the current credit rating situation in Asia; (b) the dialogue on sovereign credit ratings; (c) the lessons for Asia on Islamic finance and Sharia Quality Rating; and (d) the SME credit rating methodology and credit databases for emerging Asian countries.

Objectives

Issues related to credit rating and agency policies are strongly relevant to the ADBI’s thematic priorities in the areas of inclusive and sustainable economic growth, and regional cooperation and integration. This policy dialogue is envisioned as a brainstorming session to discuss credit rating issues among government officials and industry experts. As a result, all participants are expected to engage actively in the discussion by sharing knowledge, policy insights and experiences on credit rating issues in their respective countries.

Participants

Policy makers from eight developing member countries (Bangladesh, Indonesia, Kazakhstan, Pakistan, Philippines, People’s Republic of China, Sri Lanka, and Thailand), ACRAA members, industry experts and other stakeholders who are directly involved in credit rating and related issues.

Participant responsibilities

Actively participate in discussions and share views and experiences with others.

Output

  • Improved capacity of government officials in understanding credit rating policies and issues in emerging markets as well as in designing effective policies and recommendations.
  • Enhanced dialogue and networking among government officials and experts from international organizations, academic institutions and the private sector to promote effective credit rating in Asia.
  • Promotion of good credit rating agency governance policies and practices on rating methodology.
  • Presentation materials on the current sovereign rating situation, impacts of Islamic rating, key lessons and SME policy recommendations to improve access to adequate credit in emerging Asian countries.

How to register

Participation is by invitation only.

Language

English

Partners and or sponsors

ACRAA, Japan Credit Rating Agency, Ltd.(JCR)

Event Contact

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