CSR Corporate Governance Code

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Credit ratings have gained significant importance in the capital markets.  A rating is an opinion by a credit rating agency on the relative credit quality of an entity and the likelihood that it will meet its financial obligations in a timely manner.  A credit rating may be used by different participants of the financial markets.  For issuers, ratings can play a significant role in broadening access to capital markets and reduce the cost of funding.  Ratings also provide substantial information to investors regarding the quality of the issuer’s financials, future prospects and credit worthiness, and therefore is a useful tool to support their investment decisions.  For lenders, ratings help assess and compare the credit worthiness of borrowers.  As for regulators, ratings can improve capital market efficiency, and reduce information asymmetries and imbalances.

Capital Standards Rating (CSR) was incorporated in an attempt to fill the vital role of credit rating agencies in Kuwait and the MENA region.  Operating as an independent local credit rating agency, CSR specializes in issuing rating opinions about the relative credit risk of issuers in the MENA region.  It is a unique initiative aimed at fostering and supporting the development of the regional capital market.  CSR relies on financial statistical analyses, debt structure analyses, and credit prediction models, while applying methodologies and rating processes based on the best practices in the industry to measure the operating and financial strength of specific borrowers.  CSR’s credit opinions are based on analysts' evaluations and interpretations of information available publicly and submitted by issuers.