Corporate Governance Ratings

A corporate governance rating is a final opinion on the importance institutions attach to the shareholder rights, their public disclosure activities, relationship with stakeholders and the overall credibility of the board of directors. Our rating is realized on basis of information provided by the rated entity and acquired from other sources by our analysts. It does not perform any audit activities with respect to a rating, instead uses auditor reports as a source. This rating can be modified when access to changing conditions and information is not possible, and can be temporarily suspended or withdrawn.

A corporate governance rating is provided by a rating entity after deriving information about the adoption of corporate governance by an institution through the reports of analysts. There are many sources where information can be gathered about the relative standing if an entity with respect to corporate governance. This means a rating agency may or may not actively conduct an audit of an entity before the rating is provided. Given that corporate governance rating is dependent on the information provided on a corporation, it can be modified, suspended are withdrawn if counter information is provided. Some of the processes adopted by rating agencies before coming up with corporate governance rating are macro and microanalysis, crucial data such as proceedings of shareholders meetings, minutes of board meetings, cases filed bu consumers, suppliers among others.

Allocates a rating for an institution only when sufficient information is supplied. A rating process includes macro and micro analysis and key data (general shareholders’ meetings, publicly disclosed information and documents, minutes of board meetings, court cases filed, etc.) on the rated institution’s core business are taken into consideration. Any publicly undisclosed information provided to SAHA is stored on the basis of confidentiality rules and principles.

The contents of a final rating report should be interpreted neither as an offer, solicitation or advice to buy, sell or hold securities of any companies referred to in this report nor as a judgment about the suitability of that security to the conditions and preferences of investors.