NEWS


AUSTRALIA RATINGS LAUNCHES LISTED DEBT SECURITIES INDICES
Friday, June 03, 2016


Melbourne, 3 June 2016 – Australia Ratings is pleased to announce the launch of its family of indices that tracks the security price movements, distributions and returns of debt securities traded on the ASX: Australia Ratings Listed Debt Securities Indices.

Based on securities that are rated by Australia Ratings, the indices will provide investors and fund managers with a benchmarking tool for assessing portfolio performance.

The family of indices consists of individual indices following Australia Ratings’ Product Complexity Indicator (PCI) scale; and a composite index that includes all securities tracked in the individual indices. There are also sub-indices for securities that make franked and unfranked distributions.

Chris Dalton, Managing Director of Australia Ratings, said “The indices are the first benchmark of the performance of ASX listed debt and hybrid securities. This exciting initiative completes our credit ratings and product complexity indicators assigned to listed securities.”

The indices are accumulation indices with a start date of 1 January 2015 and track security price movements and distributions since that date.

Included in the indices are only those securities with a call or maturity date of more than twelve months and those with floating rate distributions. The pre-tax equivalent value of the distribution is used when distributions are franked, and each security is volume weighted.

It is expected that the Australia Ratings Listed Debt Securities Indices will become a valuable tool for investors and fund managers specialising in this part of the market to compare their investment performance against the individual indices and/or composite index.

The indices will be published on Australia Ratings’ website www.australiaratings.com at the start of each month based on market prices of the previous month end. Fund managers keen to use the indices for performance benchmarking should contact Australia Ratings.

Australia Ratings was appointed by ASX Limited, under the ASX Debt & Hybrid Research Scheme, to assign credit ratings to debt and hybrid securities traded on the ASX in late 2014. Australia Ratings has assigned credit ratings to most listed securities that consist of an assessment of the creditworthiness of the security issuer and an assessment of the complexity of the security. The rating assigned consists of both alphabetical and colour indicators. The alphabetical indicator follows the typical rating scale of ‘AAA’, ‘AA’, ‘A’, ’BBB’ etc.; while the colour indicator follows Australia Rating’s Product Complexity Indicator (PCI) scale of GREEN to RED.

For more information contact:

Chris Dalton, 0403 584 600, chris.dalton@australiaratings.com


 

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