Unpublished Ratings: Same Standards, Different Distribution

As the private markets continue to expand their use of investment grade fixed income instruments, regulators and other market participants have shown increasing interest in private ratings (also referred to as unpublished ratings). This increased focus has raised questions about how private ratings are developed and whether they differ from public credit ratings in terms of analytical rigor or oversight.

At KBRA, published and unpublished credit ratings are produced under the same analytical standards, methodologies, controls, and disclosures. The only distinction lies in dissemination. For public credit ratings, KBRA posts the rating and related publications on its website. For unpublished (private) ratings, we distribute the rating and associated reports to the engaging entity through a virtual data room.

All Ratings Subject to Same Methodologies and Analytical Processes

KBRA uses a consistent and well-defined rating process for all credit ratings—whether published or unpublished.…