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Overview of Rating Process

Increase in the free flow of global capital has widened contagion risks in international financial markets. In the aftermath of the financial crises over the past two decades, regulators have stepped up their regulatory measures to restore market confidence. Market participants have deepened their understanding of credit risks and enriched their knowledge of risk management. Investors now demand objective, reliable, and forward-looking credit ratings from credit rating service providers, commonly known as credit rating agencies.