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Credit Rating Agencies
To increase reliance on the report of credit rating agencies in performing credit evaluation of corporations and business projects or of debt issues with the intention of assessing the overall creditworthiness or of ascertaining the willingness and ability of the issuer to pay its financial obligations as they fall due and which assessment is translated by credit ratings periodically and publicly announced.
The requirements for accreditation of credit rating agencies are contained in 2015 Implementing Rules and Regulations (IRR) of the Securities Regulation Code (SRC).
| Classification: | Highly Technical | ||
| Type of Transaction: | G2B – Government to Business | ||
| Who may avail: | Credit Rating Agencies | ||
| CHECKLIST OF REQUIREMENTS | WHERE TO SECURE | ||
| 1. Notarized application for accreditation (one original, two photocopy); | Securities and Exchange Commission official website (https://www.sec.gov.ph/forms-and-fees/accreditation/) (https://www.sec.gov.ph/accountants-information/forms/) |
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| 2. Applicant should be a stock corporation and have a minimum paid-up capital of at least PHP 10 Million (one original, two photocopy) | Applicant | ||
| 3. List of shareholders and their corporate affiliations (one original, two photocopy) | Applicant | ||
| 4. List of other business activities, if any (one original, two photocopy) | Applicant | ||
| 5. Copies of its Articles of Incorporation and By-Laws (one original, two photocopy) | Applicant | ||
| Sworn statement on the following: 6. Ownership structure and possible conflicts of interest (one original, two photocopy); 7. Names, professional qualifications and independence of the staff involved in the rating decision (“rating specialist”) (one original, two photocopy); 8. Disclosure of affiliations, training, assistance or support it receives from international rating agencies, if any (one original, two photocopy). |
Applicant | ||
| 9. Written code of conduct that can ensure the independence of the rating specialists and the rating agency from the Issuers it is rating (one original, two photocopy) | Applicant | ||
| 10. Rating scales, criteria, measurements, symbols and related assessment devices it uses (one original, two photocopy) | Applicant | ||
| 11. Operating procedures, rating policies, rating criteria and other rationale used in arriving at a rating (one original, two photocopy) | Applicant | ||
| 12. Copy of model written agreement with Issuers (one original, two photocopy) | Applicant | ||
| 13. Manual on Corporate Governance (one original, two photocopy) | Applicant | ||
| CLIENT STEPS | AGENCY ACTIONS | FEES TO BE PAID | PROCESSING TIME | PERSON RESPONSIBLE |
| 1. Secures checklist of requirement from the OGA. | 1. Provides client a checklist of requirements with instructions. | None | 5 minutes | Officer of the day Office of the General Accountant |
| 2. Presents application and supporting documents. | 2. Pre-evaluates application and supporting documents. | None | 4 hours | Officer of the day Office of the General Accountant |
| 2.1. If application and supporting documents are not complete, the same are returned to applicant with list of requirements not complied with. If it is complete, the “Officer of the Day” clears application for payment of the prescribed fees. | ||||
| 2.2. Prepares Payment Assessment Form (PAF) and instructs applicant to process payment and issue O.R. | None | 10 minutes | Executive Assistant Office of the General Accountant |
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| 3. Presents the PAF at the Cashier and settles the required fee. | 3. Processes payment and issues O.R. |
Filing Fee: PHP 50,000.00 Annual Fee: PHP 15,000.00 |
10 minutes | Cashier Financial Management Department (FMD) |
| 4. Submits the machine- validated PAF to the OGA with the application and its supporting documents | 4. Checks contents and stamps “Received” the three (3) sets of application documents and returns one (1) copy of the application document to the client. Afterwards, inputs the application to Index Tracking System and forwards the same to the Assistant Director for the assignment. | None | 10 minutes | Executive Assistant Office of the General Accountant |
| 4.1. Forward documents to assigned personnel | None | 5 minutes | Assistant Director Office of the General Accountant |
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| 5. Compliance with comments of the Office of the General Accountant , if any | 5. Reviews application and supporting documents using the OGA’s Evaluation Sheet. If complete and qualified, GO TO STEP 5.5. And if not compliant, prepares comment letter to the applicant. | None | 12 days | Assigned Personnel Office of the General Accountant |
| 5.1 Reviews comment letter and returns to Assigned Personnel | None | 3 days | Assistant Director Office of the General Accountant |
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| 5.2 Reviews approves and signs comment letter | None | 1 day | General Accountant Office of the General Accountant |
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| 5.3 If no compliance is made within the prescribed period (allow a 30-day mailing and reply period from date of letter), prepares a letter denying the application for failure to comply with the requirements. The letter shall be reviewed and approved by the Assistant Director and General Accountant. | None |
1 hour
30 minutes
10 minutes |
Assigned Personnel Assistant Director General Accountant |
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| 5.4 If there is a submission but still not fully compliant with the requirement, GO TO STEP 5 but with a written warning that shall result to the denial of the application | None | 1 hour | Assigned Personnel Office of the General Accountant |
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| 5.5 If applicant fully complies with the requirements, prepares Memorandum to Commission en Banc, Evaluation Sheet and other supporting documents (through Supervising Commissioner) | None | 3 hours | Assigned Personnel Office of the General Accountant |
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| 5.6 Reviews Memorandum, Evaluation Sheets and other supporting documents and returns to Assigned Personnel to effect corrections. If Memorandum and other documents are already acceptable, forwards the same to General Accountant for approval and signature. | None | 1 hour | Assistant Director Office of the General Accountant |
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| 5.7 Approves and signs Memorandum, Evaluation Sheets and other supporting documents. Forwards application folder to Supervising Commissioner for approval/clearance for presentation to Commission en Banc | None | 30 minutes | General Accountant Office of the General Accountant |
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| 5.8 Reviews Memorandum and other documents | None | 1 day | Supervising Commissioner Office of the Supervising Commissioner |
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| 5.8.1. If with inquires/comments, returns the application folder to OGA for further evaluation (GO TO STEP 5). | ||||
| 5.8.2. If application is already acceptable, signs document for presentation by General Accountant to Commission en Banc | ||||
| 6. Presents Memorandum to the Commission en Banc for consideration (after clearance from Supervising Commissioner) | None | 1 hour | General Accountant Office of the General Accountant |
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| 6.1. Receives advice of the resolution of the Commission En Banc on the application | None | 1 hour | Assigned Personnel Office of the General Accountant |
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| 6.1.1. If approved, GO TO STEP 7. | ||||
| 6.1.2. If Denied: Notifies the applicant of the denial and reasons thereof, GO TO STEP 5 | ||||
| 6.1.3. If Deferred: Notifies the applicant of the deferment and requirement to be complied with or necessary action to correct the deficiency, GO TO STEP 5 | ||||
| 7. Prepares Certificates of Accreditation: | ||||
| 7.1 Print two (2) copies | None | 10 minutes | Executive Assistant Office of the General Accountant |
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| 7.2 Check details and initials on copies |
5 minutes
5 minutes |
Assigned Personnel Assistant Director |
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| 7.3 Signs Certificates | 5 minutes | General Accountant Office of the General Accountant |
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| 7.4 Notifies applicant that the Certificate may be picked up (in case of representative, subject to presentation of authorization letter) | 5 minutes | Executive Assistant Office of the General Accountant |
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| 7.5 Releases certificate of accreditation and forwards duplicate file to clerk and Logs in registry of Accredited Appraisal Companies; informs Index Tracking Personnel of the issuance of the certificate. Also Provides MIS with updated list | 1 hour | Executive Assistant Office of the General Accountant |
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| TOTAL: |
Filing Fee: PHP 50,000.00 Annual Fee: PHP 15,000.00 |
20 days |
Notes: The above processing time commences upon actual receipt of documents and payment of processing fee. It excludes the response period to comment and extension.