S&P Global (China) Ratings today published unsolicited rating reports on 25 Chinese issuers, aiming to bring more transparency into the local market by expanding our coverage and presenting more granular credit risk differentiation.
A commentary "Unsolicited Benchmark Ratings FAQ" has also been released to respond to questions market participants may have regarding this initiative.
The entities covered span more than 10 industries, including but not limited to real estate, transportation infrastructure (including local government financing vehicles), banks, insurance, securities firms, building materials and commodity chemicals. It consists of 19 corporates and 6 financial institutions. These entities are either benchmark credits in their respective sectors, or have business and financial risk profiles that are typical of their respective sectors. The entities were chosen to better demonstrate how S&P Global (China) Ratings’ methodologies are applied in different industries, and the analysis of these entities is expected to provide the market with the benchmark for assessing credit risk.
The rating results cover almost every rating from Bspc(u) to AAAspc(u), demonstrating different levels of credit risk across the rating spectrum from S&P Global (China) Ratings. Amid ongoing regulatory efforts to promote the high-quality development of the domestic rating industry, the benchmark ratings have been released with the aim of contributing to the improvement of rating quality and credit risk differentiation in the industry.