UNTREF ACR UP is gaining a strong foothold in the national financial market as credit rating agency
Buenos Aires, April 2015. On December 19th 2013, the Universidad Nacional de Tres de Febrero was recorded as Credit Rating Agency – Public University (UNTREF ACR UP), in the Register of Credit Rating Agencies, which is under the supervision of the Management of Agencies and Markets of the National Securities Exchange Commission.
The Universidad Nacional de Tres de Febrero is the first National University which has fulfilled the submission requirements to lead an innovative way in the credit rating agency market, in accordance with the Capital Market Reform Act. This Act sets forth the opening of markets. This topic has been discussed at length in G20 and BRICS Forums, since 95% of the global market is rated by only three credit rating agencies. This experience turns Argentina and the UNTREF into a leading case at a global level.
Since the registration date, different methodologies has been approved in order to authorize UNTREF ACR UP to rate Financial Trusts, Mutual Funds, Governmental Entities and Debt Securities, Private Debt Securities, Enterprises and Bank Loans, Trust Loans and Financial Entities, Deposits and Debt Securities issued by Financial Entities.
The methodologies used by UNTREF ACR UP were developed by its staff professionals. They have performed a critical analysis of the state of the art, which was then tested and approved by the National Securities Exchange Commission.
The methodologies focus on the financial instrument to be rated for the local market, its creditworthiness and its link with the reference sector, and they value its strength in accordance with the macroeconomic dynamics by means of a sensitivity analysis. These national ratings are not subjected to the concept of sovereign risk or country risk.
The process of rating starts with the requirement of information in order to hold meetings with the issuer and pay visits to him for a better understanding of its business and its market. Once the information is reviewed, the analyst in charge should call for the Rating Council so as to show it the rating proposal.
The Rating Council was created after the methodologies were approved. The Council consists of well-known professionals in the economic and financial field with wide experience in the public and the private sector. This fact has improved the performance of the UNTREF ACR UP, which has achieved the goals and exceeded the objectives suggested in seven months of work during 2014. According to 2015 forecast, the UNTREF ACR UP will definitely strengthen its position in the Argentinean financial market.
The UNTREF ACR UP code of conduct is divided into three sections: the quality and completeness of the rating process; the independence of the credit rating agencies and the avoidance of conflict of interests; and the responsibilities of the credit rating agencies towards the investing public and the issuers.
It is worth mentioning the scope of the university autonomy regarding this endeavor. The fact of being a Public University highlights the concept of autonomy, which is frequently related to academic freedom. The concept of autonomy can be reflected in independence and professionalism. The two latter aspects are extremely valuable to capture investor’s confidence. In this way, two goals set forth in the national act on capital markets are achieved: the extension of members and the protection of the investor.
The following companies, among others, make up the customer base of the UNTREF ACR UP: Schröder S.A., Banco Municipal de Rosario, Garbarino SA, Nación Fideicomisos, Bapro Mandatos y Negocios y Garantizar SGR, Sion SA and AMFAYS.
To specifically know the work done, please visit www.acrup.untref.edu.ar. You would be able to meticulously analyze the methodologies used and the rating reports issued through tender offer.