Ten Asian Raters Form Association

Rating agencies from 10 Asian countries have formed the Association of Credit Rating Agencies in Asia (Acraa). The association aims at adopting the best practices of member agencies and upgrading their analytical skills through exchange of ideas, information and knowledge.

The association was formed with support from Asian Development Bank (ADB), ADB Institute and Asian Bankers' Association.

A five-member board has been elected with Kazuao Imai of Japan Credit Rating Agency as the chairman and P K Choudhary, managing director, Icra, as the vice-chairman. The other three members of the board are Santiago F Dumalo Jr, Phil Ratings (Philipines), R Ravimohan, managing director, Crisil, and Suresh Menon, Rating Agency, Malaysia. Dumalo is also the secretary general of the association.

Choudhury said: "Level of expertise of different rating agencies is not same. By forming the association, member agencies will be helped from pooled knowledge and expertise."

The initial signatories to the articles of association at a meeting held in Manila on September 14 are the rating agencies from Japan, India, Malaysia, Pakistan, Philipines, Bangladesh, Indonesia, Thailand, Taiwan and Korea. The association is in talks with more rating agencies, Choudhury said.

Acraa would have two sub-committees -- best practice committee and training and analyst exchange programme committee. According to Choudhury, the association will as well interact with the regulators, accounting bodies and judiciary bodies in the member countries to bring in common disclosure, accounting and regulatory practices. It will undertake research projects in credit-related areas and make available such knowledge and information to its members as well as the investors.