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07.08.2007
First-time assignment of corporate governance rating in Ukraine
On July 26 Hyatt Regency Kyiv Ukraine hotel hosted a press-lunch with participation of the leading Ukrainian mass-media devoted to first assignment in Ukraine of corporate governance rating by specially-developed national scale. The RCGuaB rating has been assigned to Kiev-based Parex Asset Management Ukraine Asset Management Company and Pension Funds Administrator.
'This is quite a new product, yet being actively used in many countries,
including Russia, where these ratings are assigned by Russian division of Standard &
Poor's. Many overseas companies and financial institutions have such ratings'
Stanislav Dubko, Credit-Rating agency CEO said. According to him, corporate
governance ratings are most actively used today in evolving economies and markets;
apparently companies from that countries are striving to show their transparency and
openness, thus bearing this rating is an efficient leverage for that. The standards of
corporate governance remain underdeveloped in Ukraine, and the companies oriented to
cooperation with the customers from western countries are trying to achieve certain
heights, and the bearing of such a rating benefits to this - Mr. Dubko noted.
In contrast to usual credit ratings, the corporate governance rating focuses exclusively on issues linked with organizing company's management, not with its financial indicators. We may determine two groups of clients, which are aspiring to get a corporate governance rating. The first group includes financial institutions, asset management companies, in fact those players of financial market, which attract funds and try to show their adequately high level of management. The second group embraces biggest industrial companies, which reckon on investments and on IPO, and which require disclosure of information on their transparency. The essence is that the companies, of course, must show their would-be investors and customers that the company meets interests of all parties concerned, so that investors could entrust them their funds. The corporate governance rating exhibits the grade of meeting these interests. Mr. Dubko stressed.
According to Credit-Rating CEO, the methodology of assessment of corporate governance has been developed basing on analysis of corporate management in different countries, with the list of criteria to be assessed being selected afterwards. The rating has not quantitative, but qualitative meaning, and this work is usual for the agency. Mr. Dubko said.
As Credit-Rating CEO explains, the corporate governance rating may vary from A (the highest rating) to E (the lowest rating). Ratings of B, C and D may have relative standing within major categories (modified by '+' or '-'). The rating of corporate governance have compulsory prefixes of 'ua' which denotes a rating in accordance with the Ukrainian national scale) and of 'RCG' indicating a rating of corporate governance.
'We are privileged to be pioneers. Our customers both existing and potential, may see the level of company's transparency, of its management quality, and company's adherence to interests of customers, owners and regulators. Once we have become managers of your assets, you may be sure nothing is going to happen to your money' noted Deniss Moscenko, the Director General of Parex Asset Management Ukraine.
We are glad that some of our minuses have been revealed, for it has never occurred difficult to us to cross them to pluses, thus striving to get a rating upgraded in the course of future revisions. This may help our headquarters (Parex group) to understand the current flaws in our work' Mr. Moscenko said. According to him, the company is planning to get a rating upgraded in the forthcoming year.
For more information, please contact:
Information and
analytic department
Sergey Rozumyak +38044490 25 50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
