Thailand International Rating Agency

completed

Thai International Rating Agency, Inc. or TIRA is to be sponsored by Fitch IBCA Inc. (FII), and will provide a full range of ratings services, with its core business being ratings of long-term and short-term securities issues, general credit ratings (i.e., issuer ratings) and other specialized rating types. Supplemental products will include analytical reports, sector studies, and data reports. TIRA also plans to offer seminars, either independently or in conjunction with FII''s existing credit training workshop series. The creation of TIRA will enhance Thai clients'' access to high quality, independent ratings and related products using internationally acceptable standards and methodologies. The creation of a new independent and professional credit rating agency is fully supported by the Thai Government, which sees such an agency as part of its post-crisis strategy to restore public confidence in financial markets and institutions, and to further the development of domestic bond market. Under the present regulations, bonds with the size of over THB 100 million and with more than 10 holders will have to be rated. Starting from April 3, 2000, both private placements and public offerings will have to be rated (previously only public offerings had to be rated). IFC has actively sought to assist the development of Thailand''s financial infrastructure since the country''s markets were first liberalized in the 1970s. IFC has played a catalytic role in the establishment of a first joint venture rating agency. IFC is instrumental in the creation of this joint venture. IFC is seen as a neutral party that brings credibility and rich experience in creating professionally managed credit rating agencies in emerging markets.