Credit Ratings

Financial Services Guide



Financial Services Guide


AUSTRALIA RATINGS PTY LTD 
ABN 90 141 393 375 

What is the purpose of this Financial Services Guide? 

This Financial Services Guide (FSG) provides you with information about Australia Ratings Pty Ltd (Australia Ratings) to help you decide whether to use the services it offers.  

It explains: 
  • the services offered by Australia Ratings;
  • how instructions may be provided to Australia Ratings;
  • how Australia Ratings is remunerated; and
  • the details of Australia Ratings' internal and external complaints handling procedures and how you can access them.
Australia Ratings acts for itself and has authorised the distribution of this FSG to you.  

Who is Australia Ratings?

Australia Ratings Pty Ltd (ABN 90 141 393 375) is a newly established credit rating agency in Australia. It provides credit rating services to large corporate groups, financial institutions, fund managers, responsible entities, product issuers, government authorities and professional clients. It also provides services to individual investors, self managed superannuation funds, financial planners and others who require its services to evaluate credit risks for various financial products and entities (Services).  

Australia Ratings value proposition is to provide independent, understandable, timely and accessible service to assist investors gauge credit risk and complexity of products sold in the Australian retail debt market.  
Australia Ratings’ Australian Financial Services (AFS) licence number is 346138. Australia Ratings acts for itself when providing the services under the AFS licence.  

What services can Australia Ratings provide?  

Under its AFS licence, Australia Ratings may only carry on a financial services business to provide general advice by issuing a credit rating to retail and wholesale clients. It intends to provide credit rating services in respect of the following products and entities: 

• organisations including companies, financial institutions and state owned enterprises. 
• hybrid securities including convertible notes;  
• government bonds and debentures; 
• unsecured Australian corporate bonds; 
• fixed income funds; 
• cash management trusts; 

Ratings and product complexity assessments will be assigned according to published objective methodology. 

What are Credit Ratings and Product Complexity Indicators? 

Credit ratings are assigned to differentiate the degree of credit worthiness of organisations and fixed income products available to investors in the Australian financial market. Ratings are assigned on a long term and short term rating scale. Long term ratings are assigned for investment or financial exposure for terms greater than 12 months whereas short term ratings apply to terms less than 12 months. 

The product complexity indicator is a colour coded indicator that is designed to differentiate debt securities which may have similar credit attributes but may have complexity in the terms and conditions of the security that could arise due to unanticipated variability or change in the returns from the investment. 

Details and explanation of the rating scale and the product complexity indicators can be found on our website.  

A dedicated website www.australiaratings.com has been established to facilitate: 
  • an explanation of the rating symbols;
  • disclosure of rating methodologies;
  • the listing of current ratings and history of rating changes for fixed income securities or retail debt products; 
  • timely distribution of research reports; and
  • disclosure of up to date information relevant to the product.

Australia Ratings bases its research on information provided by the issuer of the financial product or obtained from sources considered reliable. Australia Ratings does not perform an audit or conduct any form of due diligence in connection with any rating and may rely upon unaudited information. 
Investors should make their own inquiries. Information obtain subsequent to the rating being assigned may cause the rating to be changed or withdrawn at any time. Investors should refer to our website for the most recent rating and rating report. 

Will you provide me with advice which is suitable to my needs and financial circumstances?

The provision of the credit rating services will entail the provision of general advice only. That is, the issuing of credit rating will not take into account a client’s personal circumstances, financial situation and needs.  
Before deciding whether to invest in an entity or a financial product rated by Australia Ratings, you must assess whether the information or general advice is appropriate to your particular needs, objectives and financial circumstances. If you would like assistance with this, you should consult an appropriately authorised financial advisor or broker before making any investment decision.

How do I give information to Australia Ratings? 

You can give us information by telephone, post or email using details provided in this Guide. In some cases, howver you will need to provide us with your personal information to enable us to identify you and to provide our Services to you.

How will I pay for the Services?

Australia Ratings will post current ratings and rating reports on its website.  There is no charge to access the site and this information.

How does Australia Ratings get paid?

Australia Ratings' revenue will be generated from engagement by issuers, responsible entities and product sponsors to have retail fixed income securities and managed investment schemes rated. A rating fee plus incidentals will be charged for a rating and a surveillance fee will be charged on each anniversary of the initial rating engagement. The fees generated may ultimately benefit the employees, directors or other associates of Australia Ratings. The remuneration of Australia Ratings personnel is not related to the performance of any rated entities or financial products.  

What fee does the person who referred me receive?

We do not pay any fee or commission to any person who refers you to use our Services.  

Disclosure of Interest 

Australia Ratings does not have any relationships or associations which might reasonably be expected to be capable of influencing the way we provide our Services to you.  

Compensation Arrangements
 

Australia Ratings has professional indemnity insurance in place that complies with section 912B of the Corporations Act and ASIC Regulatory Guide 126.  

Copy of this Guide

You can request a hard copy or electronic copy of the Financial Services Guide to be sent to you free of charge by contacting us using the contact details set out above. 

Who can I complain to if I have a complaint about the Services provided to me? 

If you have a complaint about the Services provided to you, you should take the following steps: 
  1. Contact us and tell us about your complaint. 
  2. Alternatively, you can put your complaint in writing and forward it to:

    The Complaints Manager
    Australia Ratings Pty Ltd
    Level 1, 114 William Street
    Melbourne Victoria 3000
     
  3. We will endeavour to investigate and resolve your complaint and communicate our decision to you within 45 days. If you still do not get a satisfactory outcome, or if we fail to resolve your complaint within 45 day, you may be able to lodge a complaint with the Financial Ombudsman Service (FOS). You can write to FOS at GPO Box 3, Melbourne VIC 3001 or call them on 1300 780 808  visit www.fos.org.au.

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© Copyright 2017 Australia Ratings. All Rights Reserved
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This website is published by Australia Ratings Pty Ltd (ABN 90 141 393 375), holder of AFS licence 346138 and Australia Ratings Analytics Pty Ltd (ABN 95 616 254 294), holder of AFS licence 494552. The information contained in this website is of a general nature only, and does not take into account your objectives, financial situation and needs. You should consult your own professional advisers before making an investment decision.

Melbourne, 25 September 2017

Australia Ratings is pleased to inform that we’ve made some changes to our website. The new menu layout coincides with the release of Investment Ratings – our new fund ratings and research service - and is designed to help you gain quick and easy access to related content.

Some important changes include

  • ASX Research, Listed Debt Indices & Fund Credit Rating Reports now located under Credit Ratings
  • Operational Capability Assessments, Private Analytical Services & Training located under Analytical Services
  • Login process remains the same and should not be affected.

For further details, please click here