• PEFINDO provides two basic types of ratings: Company Rating and Debt Instrument Rating.

      A Company Rating, also called a General Obligation (GO) Rating or Issuer Rating, is an assessment of the overall creditworthiness of a company, or its capacity to fulfill all of its financial obligations. This type of rating, though, cannot automatically be applied to specific debt securities, as it does not take into account the nature and provisions of the debt security, its standing in bankruptcy proceedings or liquidation, statutory preferences, and the legality and enforce ability of the debt security itself. In addition, a Company or Issuer Rating does not take into account the creditworthiness of the guarantor, insurer, or other forms of credit enhancement supporting the company’s credit quality. This type of rating can be used by a company or an issuer to provide a visible grading measure of creditworthiness relative to others. Furthermore, a Company or Issuer Rating can be used as a marketing tool to promote corporate standing.

      A Debt Instrument Rating is a current opinion on the creditworthiness of an obligor with respect to a specific financial obligation, a specific class of financial obligations, or a specific financial program. It takes into consideration the creditworthiness of the guarantor,insurer, or other forms of credit enhancement on the obligation. The opinion evaluates the obligor’s capacity and willingness to meet its financial commitments as they come due.This type of rating may assist the issuer in determining the structure of a debt issuance (coupon rate, tenor, credit enhancement). At the same time, it is useful for investors to compare different issuers and debt issues when making investment decisions and managing their portfolios.